On 1 February 2023, ESMA published a report on the use of Artificial Intelligence (AI) in European securities markets.

ESMA pointed out that the wide use of AI involves risk.  ESMA is monitoring the use of AI in securities markets in the EU, and has identified its main areas:

• asset management: more and more managers are using AI in investment strategies, risk management and compliance management
• trade: traders, brokers and financial institutions use AI to optimise the execution of transactions and post-sale processes
• other: some credit rating agencies, proxy advisers and other financial market participants also use AI, mainly to increase the efficiency of information collection and data analysis.

The document is available here.