The use of Artificial Intelligence (AI) and the risks associated
with it are currently making headlines, in particular due to
developments around ChatGPT. Owners of tech companies are stressing
the need to pause the training of AI systems as AI systems with
human-competitive intelligence can pose profound risks to society
and humanity. The text of the EU AI Act which aims to regulate the
use of AI on the European market and could therefore provide
safeguards is however far from final. Relatedly, the ESMA recently
published its Trend, Risks and Vulnerabilities Risk Analysis Report
on AI in EU security markets.
In its
report ESMA provides valuable insights into the
opportunities and challenges presented by the increasing use of AI
in the securities markets. It also highlights the need for a
balanced and proactive approach as to the regulation of AI in order
to ensure that it is used in a safe and effective manner that
promotes market integrity and investor protection.
