European Union: European Parliament adopted resolution on impact of artificial intelligence on financial sector

On 25 November 2025, the European Parliament adopted a resolution on the impact of Artificial Intelligence (AI) on the financial sector. The resolution outlines the Parliament's position on AI adoption in financial services, acknowledging opportunities for innovation, fraud detection, and regulatory compliance whilst noting risks including data quality issues, discriminatory outcomes, and cybersecurity vulnerabilities. It notes the existing sectoral legislation to govern current AI deployment but recommends that the Commission provide guidance on applying existing financial services legislation to AI use and that supervisory authorities strengthen coordination and promote consistent application of regulations. The resolution calls for financial competent authorities to serve as market surveillance bodies for high-risk AI systems and to assess concentration risks from reliance on third-party technology providers. It supports building AI literacy in the financial workforce, boosting the European Union's AI development, strengthening international framework compatibility, and encouraging regulatory sandboxes and testing environments for AI innovation.