The European Commission has launched two initiatives aimed at gathering insights from financial market stakeholders regarding the application of artificial intelligence (AI) in the financial sector. These initiatives seek to assess market developments, understand AI-related risks, and prepare for the implementation of the AI Act in finance. In an effort to involve key players, the Autorité des marchés financiers (AMF) will organize practical workshops later this year.

Practical AI Workshops

According to AMF, the first initiative by the European Commission is a call for financial services firms to express their interest in participating in workshops focused on recent AI developments within the sector.

These workshops, scheduled to occur virtually from September to December 2024, aim to provide a platform for stakeholders with active AI projects to share their experiences and insights. The AMF has urged firms developing AI tools to respond to this call by July 26.

These sessions will gather various European financial authorities and stakeholders, fostering an environment where participants can discuss their hands-on experiences with AI in finance. The goal is reportedly to identify regulatory issues and gather practical feedback from those directly involved in deploying AI technologies.

The second initiative is a public consultation on the use of AI in the financial sector. This consultation aims to inform the European Commission about how AI is currently being used in financial services, highlighting both opportunities and potential risks.

The commission has invited all players in the financial ecosystem, including financial institutions, companies, and consumer associations, to share their views. These insights will reportedly help in understanding the practical applications of AI and in refining regulatory frameworks like the AI Act. Stakeholders are encouraged to participate in the consultation, which remains open until September 13, 2024.

Engaging with the AI Act

These initiatives are part of the European Commission's efforts to engage with the financial sector on AI issues. By involving stakeholders through workshops and consultations, the commission seeks to create a well-rounded perspective on the use of AI in finance.

Meanwhile, Swift recently launched two AI pilots in partnership with major international banks to enhance fraud detection in cross-border payments. The initiative aims to use AI technology to save the industry billions in fraud costs and enhance the cross-border payments ecosystem.

The first pilot will focus on enhancing Swift's existing Payment Controls service, which enables financial institutions to identify potential fraud by detecting anomalies in payment patterns. Swift aims to create a more comprehensive system for identifying fraudulent activity based on historical data from the Swift network by integrating an AI model.