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How the EU AI Act will affect financial institutions

David Salloum

The European Union (EU) Artificial Intelligence (AI) Act, which came into force on 1 August 2024, is a significant legislative development for financial institutions. With provisions starting to apply over a period of six to 36 months, most of the Act's rules will be enforceable after two years. It has major implications, especially for financial institutions using high-risk AI systems like credit scoring models and risk assessment tools.