The European Securities and Markets Authority (ESMA) has emphasized that banks and investment firms must demonstrate an "unwavering commitment" to their clients' best interests when using artificial intelligence (AI).

On May 30, ESMA issued a public statement detailing how financial services companies within the European Union (EU) can integrate AI into their operations.

The statement underscores the application of AI in the context of the EU’s Markets in Financial Instruments Directive (MiFID) securities law, stating that these institutions bear full legal responsibility for consumer protection.

ESMA acknowledged AI’s potential to revolutionize retail investment services by enhancing efficiency and innovation. However, it also noted the significant impact AI could have on the behavior of financial institutions and retail investor protection.

"Importantly, firms' decisions remain the responsibility of management bodies, irrespective of whether those decisions are taken by people or AI-based tools," the statement noted.

Furthermore, ESMA stressed that the use of AI in investment services mandates firms to prioritize their clients' best interests consistently, regardless of the AI tools employed. This directive applies to both internally developed AI tools and third-party AI services, such as generative AI chatbots like OpenAI’s ChatGPT and Google’s Gemini.

Earlier this year, the EU enacted the world’s first comprehensive AI regulations, applicable across its 27 member states. This latest ESMA statement focuses solely on compliance with MiFID and is distinct from the EU AI Act.

In addition to AI regulation, the EU has been proactive in addressing other AI-related matters. For instance, on May 24, the EU Council reached an agreement to use supercomputers to enhance the region’s AI ecosystem and support startups.

Moreover, on May 27, the European Blockchain Observatory and Forum (EUBOF) released a report highlighting the potential of blockchain and AI integration to drive innovation, especially in sectors like healthcare and finance, where data security is crucial.