AI in Financial Services

AI-based creditworthiness assessment is explicitly listed as high-risk in Annex III of the EU AI Act. Models that determine access to credit must meet conformity assessment, transparency, and human oversight requirements.

Transaction monitoring and anomaly detection systems may qualify as high-risk when they produce legal effects. Real-time payment fraud systems must balance detection speed with explainability obligations.

High-frequency and algorithmic trading systems face dual regulation, MiFID II governance requirements for algorithmic trading strategies plus EU AI Act obligations for AI-driven decision-making in financial markets.

AI-powered Know Your Customer and Anti-Money Laundering screening processes personal data at scale. When these systems determine customer onboarding outcomes, they trigger high-risk classification under the EU AI Act.

Automated insurance claims assessment and settlement using AI. When these systems make decisions that affect policyholders' coverage, they create obligations under both the EU AI Act and Solvency II's model governance requirements.

AI-driven investment advice and portfolio management must comply with MiFID II suitability requirements, the EU AI Act's transparency obligations, and investor protection rules, regardless of whether advice comes from a human or a model.