European Parliament recommends clear, proportionate rules and supervisory coordination for AI in financial services

On 25 November 2025, the European Parliament approved a resolution on the impact of artificial intelligence in the financial sector. Its resolution sets out recommendations addressed to ensure consistent implementation of the AI Act, avoid over‑regulation, strengthen coordination among authorities, and manage concentration risks resulting from the use of AI systems. 

Risk-based approach 

The text acknowledges the widespread adoption of AI and reiterates the EU’s risk‑based approach. It notes that the AI Act (Regulation (EU) 2024/1689) introduces proportionate obligations and designates as “high risk” two priority use cases: for consumer credit rating, creditworthiness assessment and the setting of premiums and risk in life and health insurance.

Specifically, the European Parliament’s resolution:

• calls on the Commission to provide clear and practical guidance on applying the acquis in financial services to AI in a fair, ethical and transparent manner, and in the interests of consumers;  
• requests avoiding over regulation (in particular, it calls for coherent definitions and simplification of the regulatory framework to prevent duplication and disproportionate burdens);
• calls on European and national authorities to support the responsible adoption of AI through consistent interpretations and proportionate application of existing legislation;
• highlights the importance of closely monitoring the risks that may arise from the opacity of AI systems and from concentration among providers, which could affect financial stability;
• calls on the Commission and EU Member States removing barriers to entry for innovative AI- based firms, facilitating cross- border scale- up processes, and including them in supervisory innovation hubs;
• encourages European and national supervisory authorities to strengthen AI‑based supervisory tools and technologies (SupTech) and integrate them into day‑to‑day activities, clarifying that such tools support (but do not replace) human oversight.
   

For market participants, the resolution frames expectations around how the AI Act will be interpreted and implemented in the financial sector and how it interacts with the rules already in force.

Compliance priorities

With regard to compliance priorities, the European Parliament considers specific aspects, including:

• Use‑case mapping. The resolution underlines the importance of ongoing monitoring of regulatory gaps and the evolution of AI use cases in the financial sector.
• Data governance. The resolution underlines the need to ensure data quality, lineage, and minimisation, with legal bases compliant with the GDPR.
• Testing and documentation. Rigorous testing, model registers, and risk assessments are required. Explainability should be proportionate to the impact on the customer.
• Human oversight. Effective human oversight must be maintained, with ex ante and ex post controls over decisions affecting consumers’ rights and finances.
• Third Parties and DORA. In light of the concentration risk among technology providers, the resolution calls for exit strategies and arrangements for operational continuity in line with the Digital Operational Resilience Regulation (DORA). It also calls for strengthening compatibility and interoperability of AI models and compliance frameworks with international partners that share the same principles.
• Financial education and transparency. Clarity is required on the role of AI in retail services and the provision of understandable disclosures, to support informed decisions and financial education.

Osborne Clarke comment

The sector can expect the Commission to publish guidance on how current legislation applies, to ensure responsible use of AI in financial services. Supervisory authorities will strengthen coordination, cooperation and information exchange to avoid jurisdictional conflicts and to prevent fragmentation of the market.