Source: European Central Bank

European Central Bank (ECB) President Christine Lagarde delivered a speech on 1 April 2025 addressing the regulatory and ethical risks of artificial intelligence in the financial sector. Lagarde emphasized the need to confront the increasing reliance on opaque AI models in banking and investment services, warning that such tools could introduce systemic vulnerabilities and reduce transparency in financial markets.

She called for the development of robust regulatory frameworks to govern the use of AI, including mechanisms for explainability, accountability, and cross-border coordination among supervisory bodies. The ECB is pushing for AI in finance to be subject to the same rigorous risk assessments as other critical financial instruments.

The speech highlights the growing urgency for the EU to align technological innovation with financial stability and consumer protection.