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ARTICLE · 05 JULY 2024

FINMA's Supervisory Expectations Regarding The Use Of Artificial Intelligence Of Supervised Entities

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FINMA has identified four areas in which the use of AI can pose challenges: governance and responsibility, robustness and reliability, transparency and accountability, and non-discrimination.

SwitzerlandTechnology
Romedi Ganzoni
Romedi Ganzoni
MichèLe Landtwing Leupi
MichèLe Landtwing Leupi
Dominik Hofmann
Dominik Hofmann
Filippo Börner
Filippo Börner

FINMA's Annual Report 2023 and Risk Monitor 2023 set out its expectations for the use of AI in the financial markets, highlighting the challenges it sees and providing initial guidance on how to address them.

The increasing use of artificial intelligence (AI) in the financial markets has not gone unnoticed by FINMA, which stated in its Annual Report 2023 that it has set out its expectations in this regard with reference to its Risk Monitor 2023. In addition, FINMA stated that it has started to conduct on-site inspections and supervisory exchanges with financial institutions using AI. Overall, the challenges posed by AI are not considered to be fundamentally new but can be addressed within the existing frameworks.

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