MEPs give guidelines for use of AI in the financial sector

MEPs on Tuesday adopted a resolution laying out their priorities regarding the use of artificial intelligence in the financial sector.

The resolution, spearheaded by Arba Kokalari (EPP, SV), was adopted in plenary with 426 votes in favour, 182 against and 39 abstentions.

The resolution looks at the rapidly growing use of artificial intelligence by the financial sector, recognising its potential to improve efficiency, innovation, consumer services, and investments. More particularly, MEPs say that there is strong potential for AI to benefit the financial sector through fraud detection, personalised advice, transaction monitoring, and Environmental, Social and Governance (ESG) data analysis.

However MEPs also flag significant risks such as data-bias, model opacity, over-reliance on a few technology providers, cyber-security threats, and governance challenges. To mitigate these, MEPs stress the need for human oversight, robust data governance, an update to the EU’s supervisory tools, and call for a regulatory framework that would encourage innovation but not at the cost of consumer protection and financial stability.

The resolution asks the Commission and supervisors to issue clearer, proportionate guidance rather than producing new rules. It also urges supervisory authorities to cooperate better, including through consistent interpretations, information-sharing, and cross-border coordination.

MEPs also call for greater investment in AI, increasing AI literacy and reskilling, researching the environmental footprint of AI, setting up AI-specific regulatory ‘sandboxes’, and reducing regulatory barriers for AI-based financial firms.

Quote of the rapporteur

Ms Kokalari said: "With this report, we send a clear message that no new legislation is needed for the use of AI in the financial sector. Instead, existing rules must be clarified, made less bureaucratic, and enable investments. This signals a significant policy shift toward the market from the European Parliament, which has previously been considerably more sceptical of AI.

"There is significant potential in the responsible use of AI in the financial sector, which can deliver safer and more efficient products for consumers. Policymakers must now ensure the right conditions for AI deployment, without adding administrative burdens".