- Financial services are heavily regulated, and AI use does not exempt firms from compliance.
- Regulators affirm that AI-generated content must follow the same rules as human decisions.
- AI tools providing financial advice must comply with suitability requirements and avoid misleading statements.
- AI-generated marketing or customer communications must be fair, accurate, and non-exaggerated.
- Record-keeping laws (e.g., MiFID II, SEC rules) may require firms to retain AI-generated outputs.
- Banking regulators mandate sound AI risk management, validation, and governance.
- AI models informing credit, capital, or trading decisions must undergo model governance review.
- Firms risk non-compliance if they fail to supervise AI systems adequately.
- Evolving regulations (e.g., EU AI Act) may impose stricter oversight on AI in high-risk areas like credit scoring.
- Non-compliance with AI regulations can lead to fines, restrictions, or litigation.