AI Regulation In The Financial Sector

Key Take-aways

1. Switzerland has not yet introduced an AI-specific regulatory framework. Financial institutions utilizing AI must comply with the general legal framework and FINMA's supervisory expectations.

2. The EU AI Act introduces new regulations on AI systems, affecting not only EU entities, but also Swiss companies that supply AI systems to the EU or deploy systems whose output is used within the EU.

3. Financial institutions and insurance companies must adopt AI governance frameworks and stay informed about regulatory developments to ensure compliance.

1 Introduction

Artificial intelligence (AI) has become a key driver of innovation in the financial industry, where it is employed in a wide range of use cases, including fraud detection, risk management, cash flow forecasting, process automation, credit risk analysis, customer relationship management, trading algorithms, IT development and information analysis. While recent developments in