Impact of the new EU AI regulation on financial sector firms (September 2021)
In-depth Guides (Publications)
The recently proposed EU regulation on artificial intelligence (AI Act) will impose new regulatory requirements on firms across the financial sector when they use, provide, import or distribute computer software for biometric identification, human capital management or credit assessment of individuals. It will also prohibit the deployment of software exploiting subliminal techniques or vulnerabilities due to age or disability and impose transparency obligations on providers and users of other software. Firms’ compliance with the new requirements will be challenging because of the difficulty of determining what software will be treated as an ‘artificial intelligence system’ subject to these requirements and which entities within a financial sector group will be subject to obligations under the AI Act, especially given its extraterritorial application.