The first act
12.08.2024 – Articles
The European Union’s AI Act landed on August 1st 2024. Now follows a two year integration period, with the rules coming into force on August 2nd 2026.
The rules are based on a risk-based approach, classifying AI systems by the risk they pose to users. But what does it all mean for financial services?
Key takeaways:
The AI Act works by classifying AI systems into four risk categories
For financial services companies, whether developing their own AI systems or providing systems to others, by and large they will be covered by existing EU financial services laws, namely DORA
Enforcement of AI rules for the sector therefore falls mainly to European Banking Authority (EBA), European Securities and Markets Authority (ESMA), and European Insurance and Occupational Pensions Authority (EIOPA), collectively known as the European Supervisory Authorities (ESAs).