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EU Financial Regulator Demands Banks to Prioritize Client Interests in AI Usage

The European Securities and Markets Authority (ESMA), the leading financial regulatory agency in the European Union, has issued a crucial mandate to banks and investment firms. In light of the increasing use of artificial intelligence (AI) in the financial sector, ESMA is calling for these institutions to prioritize the interests of their clients. This move reinforces the accountability of banks and investment firms under the Markets in Financial Instruments Directive (MiFID). The aim is to safeguard the rights and well-being of clients in a rapidly evolving digital landscape.