IOSCO: AI in capital markets: use cases, risks, and challenges

IOSCO’s report sets out five key findings which relate to: firms’ increasing use of AI (such as using decision-making processes and enhancing compliance functions – particularly with AML/CFT measures); risks relating to AI systems (including AI model and data considerations, outsourcing, and third-party dependency; and interactions between humans and AI systems); the evolvement of industry practices, and regulatory responses to the use of AI in the financial sector.  Responses to the report must be received by 11 April 2025.