The European Union’s approach to artificial intelligence and the challenge of financial systemic risk

Anat Keller, C. Martins Pereira*, M. Lucas Pires

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

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Abstract

This piece examines the EU’s ‘Proposal for a Regulation of the European Parliament and of the Council Laying Down Harmonised Rules on Artificial Intelligence’ (‘AI Act’) with a view to determining the extent to which it addresses the systemic risk created by AI FinTech. Ultimately, it is argued that the notion of ‘high risk’ at the centre of the AI Act leaves out financial systemic risk. This exclusion can neither be justified by reasons of technology neutrality, nor by reasons of proportionality: neither is AI-driven financial systemic risk already covered by existing (or proposed) macroprudential frameworks and tools, nor can its omission from the AI Act be justified by the prioritisation of other types of risk. Moving forward, it is suggested that the EU’s AI Act would have benefited from a broader definition of ‘high risk’. It is also hoped that EU policy makers will soon begin to strengthen existing macroprudential toolkits to address the financial systemic risk created by AI.

Original languageEnglish
Title of host publicationMultidisciplinary perspectives on artificial intelligence and the law
EditorsHenrique Sousa Antunes, Arlindo L. Oliveira, Elsa Vaz de Sequeira, Pedro Miguel Freitas, Clara Martins Pereira, Luís Barreto Xavier
PublisherSpringer Nature
Pages415-439
Number of pages25
ISBN (Electronic)9783031412646
ISBN (Print)9783031412639
DOIs
Publication statusPublished - 2024

Publication series

NameLaw, Governance and Technology Series
Volume58
ISSN (Print)2352-1902
ISSN (Electronic)2352-1910

Keywords

  • AI
  • AI Act
  • Artificial intelligence
  • EU regulation
  • FinTech
  • Systemic risk

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