BaFin outlines supervisory approach to AI in finance

BaFin expert Jens Obermöller detailed the regulator's expanding role supervising AI use by financial entities under the EU AI Act.

BaFin signalled active supervision of AI deployment in lending, compliance and communication under the AI Act. Firms should expect scrutiny of model governance, risk classification and human oversight controls as BaFin operationalises its new supervisory mandate.

Clarifies BaFin's supervisory posture on AI, informing model risk, compliance automation and third-party AI governance programmes.

Signals direction of AI supervision in a major EU market with implications for model risk frameworks across business lines.

“BaFin expert Jens Obermöller discusses how financial entities use AI in financing, lending, compliance and communication, EU AI Act obligations, and BaFin's new supervisory role.”