June 2025
Since the publication of IOSCO’s last report on Artificial Intelligence (AI) in 2021, AI technologies have undergone significant developments, including the emergence of large language models (LLMs) and generative AI systems (GenAI). Recent advancements in AI have expanded the range of AI applications in financial markets, leading to potential benefits as well as to potential risks.
IOSCO’s most recent work on AI is currently being developed by its Financial Technology Task Force (FTF) as a two-phased approached:
The first phase, consisting of this report, aims to develop a common understanding among IOSCO members of the issues, risks and challenges presented by emerging AI technologies used in financial products and services, from the perspective of investor protection, market integrity and financial stability, and to identify the way some IOSCO members have started responding to recent developments. The report relies on research conducted in 2024 by the IOSCO FTF AI Task Force, through surveys, stakeholder outreach and literature reviews, to collect information on current and potential future uses of AI systems in financial products and services.
The second phase of IOSCO’s work on AI will be to consider, if appropriate, the development of additional tools, recommendations or considerations to assist its members address the issues, risks and challenges posed by the use of AI in financial products and services. IOSCO will continue to play a coordinating role regarding AI developments in the financial sector and to engage with other relevant international organisations, such as the Financial Stability Board (FSB).
This document was submitted for public consultation until 11 April 2025 to receive comments on its content and other potential future focus areas from financial market participants, AI developers, academics, researchers, policy experts and other stakeholders.