On 12 March 2025, the International Organisation of Securities Commissions (IOSCO) issued a new consultation report on artificial intelligence (AI) in capital markets.
The purpose of the consultation report is to create a shared understanding among IOSCO members of the issues, risks and challenges that emerging AI technologies used in financial products and services may pose to investor protection, market integrity, and financial stability, and to assist IOSCO members as they consider regulatory responses.
The consultation report:
- Briefly outlines the evolution of the use of AI technologies in capital markets and details common use cases for AI by market participants.
- Details risks, challenges, and other issues associated with AI technologies. In particular, IOSCO focuses primarily on recent advancements in AI, and outlines what these developments may mean for investor protection, market integrity, and financial stability.
- Analyzes how certain market participants are approaching the development, deployment, and maintenance of AI systems, and how recent advancements in AI are impacting certain market participants’ considerations for policies, procedures, and controls around their use of AI. IOSCO also identifies certain risk management and governance principles that are emerging in the industry.
- Provides an overview of surveyed IOSCO members’ existing and proposed responses to the use of AI systems in the financial sector.
Next steps
The deadline for comments on the consultation report is 11 April 2025.