Work

Future themes in regulating artificial intelligence in investment management

Year: 2025

Type: article

Abstract: We are witnessing the emergence of the “first generation” of AI and AI-adjacent soft and hard laws such as the EU AI Act. In parallel, existing industry regulations, such as GDPR, MIFID II or SM&CR, are being “retrofitted” and reinterpreted from the perspective of AI. In this paper we identify and analyze several novel, “second generation” themes which are likely to become regulatory considerations in the near future, but haven’t solidified enough to register in the present-day regulatory discussions or literature. The themes are identified on the basis of existing regulations, specialist literature, industry discussions, as well as our industry expertise. Prior to making any new regulatory recommendations we explore whether novel issues can be solved by existing regulations. The contribution of this paper is a comprehensive list of emerging regulatory considerations for AI in investment management, as well as broader financial services, and the ways they might be addressed by regulations – future or existing ones.

Source: Computer law & security review

DOI: 10.1016/j.clsr.2025.106111

Authors: Wojtek Buczynski, Felix Steffek, Mateja Jamnik, Fabio Cuzzolin, Barbara Sahakian

Institutions: University of Cambridge, Oxford Brookes University

Language: English

Topic: Digitalization, Law, and Regulation

Subfield: Law

Field: Social Sciences

Domain: Social Sciences

Open Access status: hybrid

Funders: National Institute for Health and Care Research, NIHR Cambridge Biomedical Research Centre

Award: G2493601830