Work Package 4 examines how AI technologies are reshaping financial services, from robo-advisors and algorithmic trading to fraud detection and regulatory compliance, and how this rapid transformation challenges existing regulatory frameworks. 

While AI unlocks efficiencies and new business models, it also introduces risks related to systemic stability, competitive fairness, and ethical concerns such as transparency and discrimination. To respond to these challenges, the project develops a Trustworthy-AI Policy Toolkit grounded in mathematical risk models and AI ethics principles. 

This toolkit will help financial regulators identify, assess, and manage the risks of AI applications, while providing guidance to foster responsible innovation and maintain trust in the financial system. The work will support both immediate regulatory needs and long-term governance strategies for an AI-driven financial landscape.

The work program is being carried out by teams from the University of East Anglia (UEA) and from the University of Rome Unitelma Sapienza, where the lead is Fabiana di Porto. Project members include Raphael Markellos, Amelia Fletcher, and Nikolaos Vlastakis.