EU watchdog says banks must take full responsibility when using AI

AI Artificial intelligence words, miniature of robot and EU flag are seen in this illustration taken December 21, 2023. REUTERS/Dado Ruvic/Illustration

LONDON (Reuters) - Banks and investment firms in the European Union cannot shirk boardroom responsibility and a legal obligation to protect customers when using artificial intelligence (AI), the bloc's securities watchdog said in its first statement on AI.

The European Securities and Markets Authority (ESMA) on Thursday set out how financial firms regulated in the 27-country bloc can use AI in day-to-day operations without falling foul of the EU's MiFID securities law.