What changed between the draft committee report and the plenary report

Added:14. Supports the AI Act’s recommendation to designate financial competent authorities as market surveillance bodies for AI systems used in financial services deemed high-risk; notes, however, that other national competent authorities will be responsible for supervising non-high-risk AI systems; recognises the challenges arising from having multiple supervisory agencies with competences regarding the application of the acquis; recognises, furthermore, the challenges arising from the differing legal interpretations and expectations of the various supervisory agencies, which could lead to the fragmentation of the single market;

Added:15. Encourages the supervisory authorities to strengthen coordination, cooperation and information exchange to avoid overlapping jurisdiction claims; urges, moreover, the Commission and the supervisory authorities to strengthen cooperation with international partners in global standard-setting forums to ensure alignment and avoid the fragmentation of regulatory approaches, as well as to ensure that the EU keeps pace and aligns with global regulatory developments;

Added:16. Notes that the General Data Protection Regulation and its requirements on data minimisation, purpose limitation, customer consent, and financial institutions’ processing of personal data impose limitations on the use of AI in financial services; considers that the right balance is needed between reaping the benefits of the use of AI in financial services and the protection of consumers’ data;

Recommendations to ensure responsible use of AI in financial services

Change 13

Changed:10.17. Regrets that the EU is lagging behind in terms of AI innovation and investment;investment, as illustrated by the EUR 33 billion in venture funding received by EU companies developing foundational models between 2018 and 2023, compared to over EUR 120 billion received by their US counterparts17; believes that the financial services sector, as the largest spender on ICT services and products, has the potential to act as a catalyst in mobilising private investment in AI; calls, against the backdrop of slow AI investment in the EU’s financial sector, for an ambitious proposal to jump-start the European venture capital scene as part of the savings and investments union;

Change 14

Changed:11.18. Calls on the Commission to ensureprovide clarityclear and guidancepractical guidance, developed in consultation with the European and national supervisory authorities and stakeholders, on howthe application of existing financial services regulationslegislation applywith regard to the use of AI in financial services;AI; considers that such guidance should aim to enable the use of AI in the financial services sector;sector, including in a way that is ethical, responsible and transparent; calls for consistent definitions and the simplification of the regulatory framework to avoid duplicated requirements, including risk assessment reporting requirements;requirements, and cautions against a one-size-fits-all approach that places a disproportionate burden on smaller and medium-sized financial institutions; emphasises the need for a good balance between the responsible use of AI and providing enough room for innovation;

Change 15

Removed:12. Warns against the adoption of new sectoral legislation to regulate AI in financial services, as there are already established sectoral rules that cover AI deployment; believes that this would create additional layers of complexity and uncertainty and ultimately deprive the sector of the benefits of AI use; strongly advises the Commission and the Member States to coordinate to avoid gold-plating relevant legislation and to prevent the creation of new barriers in cross-border markets;

Added:19. Calls on the Commission to explore how AI-driven tools can be used in financial markets, such as in intermediation, portfolio management and compliance automation, to contribute to the objectives of the savings and investments union, including by supporting retail investors in making informed investment decisions, enhancing financial education, fostering innovation among companies, reducing market fragmentation and ensuring a safe environment for consumers; stresses that achieving these goals requires a technology-neutral regulatory framework;

Removed:13. Calls on the European and national supervisory authorities to support the uptake of AI by promoting consistent interpretations and avoiding overly strict application of existing regulations; believes that failure to support the uptake of AI risks depriving the financial services sector of the benefits of AI; emphasises that the attitude and approach of supervisors are as important as the rules themselves; recommends that supervisory efforts prioritise tangible, operational risks where identified, rather than abstract or theoretical concerns;

Added:20. Believes that sectoral legislation regulating the use of AI in financial services is mainly sufficient to cover AI deployment in its current form; underlines that there should be continuous monitoring to determine if there are duplications or deficiencies in the current financial services legislation applicable to AI deployment; underlines that additional legislation would add complexity and uncertainty and ultimately risk depriving the sector of the benefits of AI use; stresses that reliance on current frameworks requires continuous supervisory attention, effective enforcement and clear allocation of responsibility for ensuring compliance, particularly in cross-border or outsourced AI deployment scenarios, as well as the monitoring and assessment of possible future gaps created by new AI developments if they create substantial risks to consumers and financial stability; strongly advises the Commission and the Member States to coordinate to avoid gold-plating relevant legislation and to prevent the creation of new barriers in cross-border markets; notes that the Commission, according to the AI Act, can assess the list of high-risk applications under Annex III to the AI Act;

Removed:14. Believes that significant changes in the use of AI will require appropriate skills and talent, considering that the use of AI is dependent on human capabilities; supports industry measures to improve the understanding and responsible use of AI technology in the sector; asks for more clarity with regard to the AI Act’s requirements for financial institutions to comply with AI literacy requirements;

Added:21. Calls on the European and national supervisory authorities to support the responsible uptake of AI by promoting consistent interpretations and proportionate application of current regulations; believes that adequate regulation of AI deployment in the financial services sector supports uptake and societal trust in AI; emphasises that the attitude and approach of supervisors are as important as the rules themselves; recommends that supervisory efforts prioritise tangible, operational risks where identified, rather than abstract or theoretical concerns, while maintaining an active and proportionate approach to supervision, by balancing innovation and consumer protection, to manage unforeseen risks arising from the widening uptake of AI technologies; stresses the role of effectively monitoring and addressing AI-related risks, including those related to opacity, market concentration and loss of accountability, which could impact financial stability;

Added:22. Calls on the Commission and the Member States to remove entry barriers within the EU for AI-driven innovative financial undertakings, including through streamlined licensing, cross border scale-ups and inclusion in supervisory innovation hubs;

Added:23. Supports research into the environmental impact of AI use, with a focus on resource intensity and long-term sustainability, in order to increase transparency and help financial institutions to assess these aspects and their own environmental footprint;

Added:24. Believes that the increasing use of AI, which may have implications for the financial services job market, requires strong AI literacy, digital skills, and talent involvement, supported by both public-sector upskilling initiatives and market-based solutions; supports industry efforts and targeted initiatives, including public-private partnerships and reskilling programmes, to build technical and ethical AI competencies, especially regarding rights and risks, in the financial workforce; underlines the importance of developing AI strategies that enhance productivity, while supporting workers’ adaptation, upskilling and reallocation, while ensuring meaningful human oversight and control; asks for more clarity with regard to the AI Act’s requirements for financial institutions to comply with AI literacy requirements; stresses, furthermore, the importance of ensuring and promoting equal access to AI tools and services, including for less digitally capable segments of the population;

Added:25. Calls on the Commission and the European and national supervisory authorities to assess the added value of AI-specific regulatory sandboxes, innovation hubs and cross-border testing environments for financial services in enabling experimentation with AI-driven financial innovation, both to help start-ups test their products and to allow incumbent institutions to explore new use in a controlled setting, while safeguarding consumer protection and market integrity; believes that properly leveraging AI regulatory sandboxes could provide the structured, supervised testing environment necessary to facilitate innovation and responsible AI deployment within the financial services sector; encourages the European and national supervisory authorities to enhance supervisory tools and technology (SupTech) through the use of AI and integrate them into daily supervisory activities to improve the efficiency and effectiveness of financial supervision; notes that these tools are intended to support, not replace, human supervisors;

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Change 16

Changed:15.26. Instructs its President to forward this resolution to the CouncilCouncil, the Commission and the Commission.governments and parliaments of the Member States.