Artificial Intelligence in Financial Services 2025

Artificial Intelligence in Financial Services 19Although these existing regulations do not specifically mention AI, respondents agree that the underlying principles apply regardless of the technology. There is a level of agreement that current policies cover many AI uses; however, there is a call for more standardized guidance to reassure business leaders and technology advisors that new regulations will not undermine their substantial AI investments. Some industry commentators hold the conflicting view that comprehensive regulation will impede the adoption of AI by banks and insurers, leaving them at a competitive disadvantage to somewhat less regulated players in the industry – such as fintechs and non-bank lenders – resulting in greater risk to customers and the global economy. The regulation of AI will evolve as business leaders, AI researchers, policy-makers and others continue to grapple with these issues and work towards resolving gaps in current policy. They will need to be clear and consistent about the purpose of new regulations, and to keep a wary eye open for unintended consequences. They will also need to maintain a careful balance as they seek to protect private and public interests while simultaneously promoting innovation and investment across all industries.28,29Examples of areas covered by existing financial services rules FIGURE 5 0 5 10 15 20 25Share of 49 responding OECD and non-OECD members provided non-exhaustive examples of rules and regulations that may apply to the use of AI financial services. Risk management Data protection/privacy Model risk management Investor/consumer protection Disclosure Cyber risk Governance Ethical/human rights (incl. anti-discrimination) Outsourcing/third-party risk ICT management Operational resilience Market integrity/market conduct Prudential Explainability/interpretability Incident reporting/liability Competition Number of respondents Note: The OECD brings together member countries and a range of partners that collaborate on key global issues at national, regional and local levels ensuring governments can work together to share experiences and seeks solutions to common problems – using OECD’s data and analysis to inform policy decisions. Source: Organisation for Economic Co-operation and Development (OECD). (2024). Regulatory approaches to Artificial Intelligence in finance. https://doi.org/10.1787/f1498c02-en. Artificial Intelligence in Financial Services 19