Understanding the EU AI Act's impact on financial services​

The European Union's AI Act is set to introduce one of the world’s most comprehensive regulatory frameworks for artificial intelligence, aiming to balance innovation with ethical considerations and risk management The Act introduces a comprehensive regulatory framework categorizing AI systems based on risk levels: unacceptable, high, limited, and minimal. Unacceptable risk systems, such as those enabling social scoring, are prohibited. High-risk applications, including AI used in credit assessments and insurance pricing, face stringent compliance requirements. Limited risk systems must...