Finance Watch Urges Stronger EU Rules to Protect Consumers from AI Risks in Retail Finance

Protecting EU Consumers in AI-Driven Retail Finance: Key Policy Calls by Finance Watch

Finance Watch, a prominent NGO, has issued a call for stronger consumer protections in the context of AI-powered retail financial services within the European Union. Their report, published on July 16, 2025, outlines urgent policy recommendations aimed at addressing risks emerging from the integration of artificial intelligence in finance.

Three Core Policy Recommendations

• Classify AI Systems in Retail Finance as High-Risk: Finance Watch urges that all AI systems used in retail financial services be officially designated as high-risk under the EU AI Act. This classification would subject these AI tools to stricter oversight and controls, reflecting their potential impact on consumers.
• Introduce Financial-Service-Specific AI Rules: The NGO highlights that some risks inherent to financial services cannot be fully addressed by the current AI Act. They recommend implementing specific rules to manage these unique challenges effectively.
• Establish an EU-Harmonized AI Liability Framework: To ensure accountability, Finance Watch calls for a standardized liability regime across the EU for AI-related incidents in finance. This would clarify responsibilities and protect consumers when AI systems cause harm or errors.

These recommendations come as the European Commission prepares guidelines on applying the EU’s AI regulations specifically to financial services. The goal is to ensure AI innovations do not compromise consumer rights or financial market integrity.

Why This Matters for Finance Professionals

With AI increasingly embedded in everything from credit scoring to investment advice, financial professionals must stay informed about evolving regulatory frameworks. Understanding these changes will help you manage compliance risks and maintain consumer trust.

For those looking to deepen their AI expertise within finance, exploring focused training and certification programs can be a practical step. Resources like Complete AI Training's finance-focused AI tools provide valuable insights and skills relevant to today's AI-driven finance environment.

The full report from Finance Watch and the upcoming guidelines from the European Commission will be important references for financial institutions and regulators alike as they adapt to the challenges and opportunities AI presents.