On 25 November 2025, the European Parliament adopted a resolution on the impact of artificial intelligence (AI) on the financial sector.

The Resolution notes the current state of AI adoption in financial services and its potential to enhance innovation and competitiveness within the financial sector. However, the resolution stresses the importance of balancing innovation and competitiveness with the risks and challenges AI poses to the financial system as a whole. This includes foreseeable risks such as data privacy, consumer protection and financial stability along with additional risks that are hard to measure such as model hallucinations and cybersecurity vulnerabilities.

Along with these risks, the resolution further highlights the challenges of the rising use of AI for supervisory authorities and calls for European supervisory authorities (ESAs) and national supervisory authorities (NSAs) to adapt to the increasing use of AI in financial services. It stresses the importance of providing a proportionate approach to compliance that does not hinder innovation and the benefits of innovation to be primarily for end users and consumers.

The resolution further notes the regulatory landscape and the risks posed by the rising use of AI which include legal uncertainty, fragmentation of the single market and regulatory overlaps.

The resolution provides recommendations to ensure the responsible use of AI in financial services. Among other things, the resolution:

  • Requests the European Commission (Commission) and ESAs to assess the feasibility of applying the exit strategies and transition provisions stipulated in Digital Operational Resilience Act to AI models in order to mitigate concentration risks or herding given the considerable reliance on third country third-party providers for AI services.
  • Asks the Commission and Member State national competent authorities (NCAs) to identify and address any inconsistencies of implementing the AI Act as part of the upcoming Digital Omnibus package.
  • Requests the Commission and ESAs to strengthen global cooperation with international partners to ensure alignment and avoid fragmentation of regulatory approaches while ensuring the right balance between data protection and the benefits of the use of AI.
  • Calls for an ambitious proposal to jump start the European venture capital scene as part of the savings and investments union (SIU).
  • Calls on the Commission to provide clear and practical guidance developed in consultation with ESAs, NSAs and stakeholders on the application of existing financial services legislation to enable the use of AI in a way that is ethical, responsible and transparent. It further calls for the regulatory framework to avoid duplicating requirements and cautions against a one-size-fits all approach to avoid disproportionate burdens for firms.
  • Asks the Commission to explore how AI-driven tools can be used in financial markets that contribute to the objectives of the SIU. This includes exploring intermediation, portfolio management and compliance automation with regard to the objectives of supporting retail investors to make informed decisions, enhance financial education, foster innovation and reduce market fragmentation. The resolution stresses the need for a technology-neutral regulatory framework to achieve these goals.
  • Advises on the need for continuous monitoring to determine post-AI deployment if there are duplications or deficiencies in current legislation applicable to AI deployment without adding additional complexity to the current framework.
  • Strongly advises Commission and member state coordination to avoid gold-plating relevant legislation and prevent the creation of new barriers in cross-border markets. It notes that the Commission according to the AI Act can assess the list of high-risk applications under Annex III to the AI Act.
  • Calls on the Commission and member states to remove entry barriers within the EU for AI driven innovative financial undertakings. This includes streamlining licensing requirements, cross-border scale-ups and inclusion in supervisory innovation hubs.
  • Asks for clarity with regard to the AI Act’s requirements for financial institutions to comply with AI literacy requirements and stresses the importance of promoting equal access to AI tools and services specifically for less digitally capable segments of the population.
  • Calls on the Commission, ESAs and NSAsto assess the added value of AI specific regulatory sandboxes, innovation hubs and cross-border testing environments to enable AI-driven financial innovation.
  • Encourages ESAs and NSAs to enhance supervisory tools and technology (SupTech) through the use of AI and for its integration in daily supervisory activities.

The resolution was adopted in plenary with 426 votes in favour, 182 against and 39 abstentions.

The European Parliament instructs the President to forward this resolution to the Council, the Commission, the governments and parliaments of Member States.