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Showing posts from April, 2025

The EU AI Act and Financial Services: How are Financial Institutions impacted?

On August 1, 2024, the European Union’s   AI Act  came into force—the world’s first legal framework regulating artificial intelligence. Designed to balance innovation and risk, this regulation introduces a series of staggered compliance deadlines, with most provisions becoming fully applicable by mid-2026. However, some prohibited AI uses, such as real-time biometric surveillance in public spaces, will be banned within six months. Fines for non-compliance will also be severe, reaching up to 7% of global annual turnover for violations involving banned AI applications. The AI Act’s   compliance obligations   are still evolving, but organizations must start preparing now. The act introduces risk-based classification for AI systems and imposes specific requirements on developers and providers, particularly in regulated industries like financial services. In the meantime, a lot has been written about this regulation. Supporters praise the EU’s proactive stance, emphasizin...