A study by the AMF finds widespread levels of adoption in artificial intelligence by French financial market participants

The Autorité des Marchés Financiers (AMF) has carried out an in-depth study over the uses, benefits and risks associated with artificial intelligence, in order to gain a better understanding of how French financial market participants make use of the technology, and the challenges it presents. The study shows that current adoption levels are very high, with 90% of respondents indicating that they use AI or plan to do so in the very near future.

While the use of artificial intelligence in the financial sector is not new, it has accelerated significantly in recent years. The Autorité des Marchés Financiers (AMF) has carried out an in-depth study in order to gain a better understanding of the instances in which AI is used within financial services and the key issues it raises, in addition to furthering its objective to better support innovation. This work was part of a pan-European initiative, led by the European Securities and Markets Authority (ESMA). Three separate questionnaires were sent to a wide array of participants, including asset management companies, investment services providers, crypto-asset and crowdfunding service providers, as well as listed companies, and audit and advisory firms. In total, the AMF gathered information from 100 different market participants, covering a wide range of activities.

In the study published today entitled “AI use by financial market participants in France”, the AMF presents the key insights from the study.

Among the main findings, the AMF observes that:

90% of French financial market participants indicate that they are currently using AI, or plan to do so in the next 12 months, generative AI being the most widely used technology. 54% of respondents, many of which are large firms, indicate use cases already in production. A wide majority of those surveyed expect AI investment to increase over the next two years;
Use cases show that AI is mainly used for internal purposes (83% of 106 reported instances of use), focusing mainly on enhancing productivity via the use of internal assistant tools, improving data extraction, analysis or monitoring, summarising information or generating content such as the drafting of regulatory documents;
Client-facing uses currently constitute the minority of use cases: overall, 17% of these serves to improve client interaction or communication processes. Only 1% involved in the use of tools for the provision of investment services;
Most uses of AI rely on off-the-shelf solutions supplied by specialist service providers. In this respect, the AMF notes heavy reliance on a limited number of non-European providers;
Among the main perceived benefits, AI is seen as a major lever for reducing costs and improving internal processes, in addition to its ability to analyse large volumes of data;
Among the risks identified, governance and data protection issues are of primary concern, followed by a fear of being over-reliant on the technology in the absence of adequate human supervision. As a result, 72% of the entities surveyed indicated that they have developed AI governance policies.

These findings will help shape the AMF’s understanding of uses by supervised entities, and ultimately support it in devising its regulatory priorities for the years to come. The AMF will also keep a close eye on developments in client-facing uses, given the investor protection issues at play.

About the AMF
The AMF is an independent public authority responsible for ensuring that savings invested in financial products are protected and that investors are provided with adequate information. The AMF also supervises the orderly operations of markets.Visit our website: https://www.amf-france.org/en