Financial institutions have already begun to make use of AI technologies on a wide spectrum of practices including marketing, process automation, and back-office functions.With its transformative potential for the sector, the presence of AI in financial services is bound to both expand and improve.

On the other hand, new opportunities also present new risks and challenges. To address these AI-relatedconcerns,the EU AI Actdevises a cross-sectoral regulatory scheme for AI development and deployment in the EU, which is tohave significant implications for the use and governance of AI in financial services as well.This blog provides an overview of the implications of the EU AI Acton the future of AI-drivenfinancial services.