EP’s report on the impact of AI in the financial sector urges clearer rules, stronger oversight, and safeguards to harness innovation while preventing risks such as bias, fraud, and accountability gaps

The report highlights the growing use of AI (including generative models) across finance, urges a balanced approach between innovation and risk management (covering areas like fraud detection, AML controls, pricing and credit scoring), calls for clear guidance and proportional rules for financial institutions, stresses human oversight, digital skills and regulatory sandboxes, and flags the need to monitor systemic impacts…