厙惇勛圖

Home   News   Features   Interviews   Magazine Archive   Symposium   Industry Awards  
Subscribe
厙惇勛圖
Leading the Way

Global 厙惇勛圖 Finance News and Commentary
≔ Menu
厙惇勛圖
Leading the Way

Global 厙惇勛圖 Finance News and Commentary
News by section
Subscribe
⨂ Close
  1. Home
  2. Industry news
  3. ESMA publishes guidance for firms using AI in investment services
Industry news

ESMA publishes guidance for firms using AI in investment services


30 May 2024 Europe
Reporter: Sophie Downes

Generic business image for news article
Image: Shuo
The European 厙惇勛圖 and Markets Authority (ESMA) has published a statement for firms using artificial intelligence (AI) technologies to provide investment services to retail clients.

The report argues that, while AI offers opportunity to firms, there remain significant areas of risk that need to be considered.

Areas of potential concern include privacy and security problems, algorithmic biases and data quality issues, as well as an over-reliance on AI for decision making.

In line with the relevant MiFID II requirements, the guidelines aim to help companies comply with the organisation and conduct of business, as well as the regulatory obligation to act in the best interest of the client.

By fostering transparency, implementing robust risk management practices, and compliance with legal requirements, ESMA [aims] to help firms ensure they harness the potential of AI while safeguarding investors' confidence and protection, says the report.

ESMA and the National Competent Authorities (NCAs) say they will monitor the use of AI in investment services to decide if further action is needed in this area.
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to 厙惇勛圖 Finance Times
Advertisement
Subscribe today
Knowledge base

Explore our extensive directory to find all the essential contacts you need

Visit our directory →

Discover definitions, explanations and related news articles in our glossary

Visit our glossary →