{"id":34963,"date":"2023-12-18T09:50:19","date_gmt":"2023-12-18T08:50:19","guid":{"rendered":"http:\/\/www.turner.nl\/?p=34963"},"modified":"2026-09-21T16:07:50","modified_gmt":"2026-09-21T14:07:50","slug":"the-impact-of-the-new-ai-legislation-ai-act-on-the-financial-services-sector","status":"publish","type":"post","link":"https:\/\/www.turner.nl\/en\/prepair-en\/the-impact-of-the-new-ai-legislation-ai-act-on-the-financial-services-sector\/","title":{"rendered":"The Impact of the New AI Legislation (AI Act) on the Financial Services Sector"},"content":{"rendered":"\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t\t\t
<\/div>\n\t\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

PrepAIr<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

The Impact of the New AI Legislation (AI Act) on the Financial Services Sector<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

The recent agreement between the European Parliament and the Council on the European Commission\u2019s amended proposal for an AI regulation marks a significant step forward in the regulation of artificial intelligence (AI) within the European Union. This development, which aims to provide a uniform legal framework for the development and use of AI, has important implications for the financial services sector. <\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t
\n\t\t\t\t\t\t\t
\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

The recent agreement between the European Parliament and the Council on the European Commission\u2019s amended proposal for an AI regulation marks a significant step forward in the regulation of artificial intelligence (AI) within the European Union. This development, which aims to provide a uniform legal framework for the development and use of AI, has important implications for the financial services sector. <\/p>

The AI Act classifies AI systems into four risk levels: Unacceptable risk, high risk, limited risk, and minimal risk:<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t
  1. Unacceptable risk<\/strong>: This category includes AI systems that are considered a threat to fundamental rights or democracy. Examples include social scoring systems and AI that facilitates the manipulation of vulnerable groups\u2019 behavior. These systems are prohibited under the new regulations. <\/li><\/ol>
    1. High risk<\/strong>: AI systems in this category have a significant potential to cause harm to health, safety, or fundamental rights. They are subject to strict requirements, such as a mandatory assessment of their impact on fundamental rights. Examples include AI applications in medical devices and systems used in critical infrastructure. <\/li>
    2. Limited risk<\/strong>: This category covers AI systems that pose some risks, but not at the high-risk level. Specific transparency requirements apply to these systems. An example would be an interactive AI system that must inform users that they are communicating with an AI, such as a chatbot. <\/li>
    3. Minimal risk<\/strong>: Most AI systems fall into this category, where the risk of harm is considered low. Regulatory requirements for these systems are limited or nonexistent. This may apply, for example, to AI applications in video games or spam filters\u200b\u200b. <\/li><\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
      \n\t\t\t\t
      \n\t\t\t\t\t\t\t\t\t

      This classification is designed to strike a balance between promoting innovation and protecting citizens from potential harm caused by AI technologies.<\/p>

      Main Objectives of the Regulation<\/strong><\/p>

      The AI Act aims to promote the introduction of human-centered and trustworthy AI, while at the same time ensuring a high level of protection against the harmful effects of AI systems in the areas of health, safety, fundamental rights, democracy, the rule of law, and the environment. Specific areas of focus within the regulation include the protection of fundamental rights and ensuring the transparency and traceability of AI systems. <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

      \n\t\t\t\t
      \n\t\t\t\t\t\t\t\t\t

      Implications for the Financial Services Sector<\/strong><\/p>