EU AI Act to reshape finance teams across Europe

Morné Rossouw, Chief AI Officer at Kyriba, has detailed how the upcoming EU AI Act will impact Chief Financial Officers (CFOs) and finance teams across Europe.

According to Rossouw, the EU AI Act, which takes effect on February 2, 2025, will bring about significant changes in the operations of corporate finance. He pointed out, "How will these shifts impact CFOs and their teams? With AI adoption on the rise, nearly 70% of business leaders plan to invest USD $50 to USD $250 million in AI over the next year, a notable increase from 51% last year. The integration of AI agents into financial operations is becoming more prevalent, offering new avenues for automating routine tasks and enhancing analytical capabilities."

Despite the fact that the Act does not categorise most AI applications in finance as high-risk, it introduces new compliance demands. Rossouw explained, "While the Act doesn't classify most finance AI applications as high-risk, it introduces intriguing new compliance requirements. Finance teams now face the challenge of ensuring transparency and documentation in AI systems, particularly those for payments and fraud detection."

The Act specifically mandates that AI agents must maintain transparency and operate without bias. "AI agents, in particular, must adhere to these standards, ensuring they operate transparently and without bias. There's a strong emphasis on ethical use and bias mitigation, requiring systems to remain fair and unbiased," Rossouw noted.

The Act significantly influences Data quality and governance, with Rossouw emphasising that "the focus on data quality and governance necessitates high-quality datasets, reshaping forecasting and risk models."

Further changes to the formalisation of human oversight aim to enhance decision-making processes. "Additionally, the formalisation of human oversight is set to enhance decision-making, with AI agents providing support but under human supervision," Rossouw added.

The Act's transparency requirements, set to commence on August 2, 2025, will affect general-purpose AI providers. This change will provide finance teams with deeper insights into AI models. Rossouw elaborated, "Starting August 2, 2025, transparency requirements for general-purpose AI providers will revolutionise finance teams' insights into AI models, potentially boosting CFOs' confidence."

Rossouw also noted the Act's emphasis on the importance of AI literacy within finance teams, pointing out that "The Act's emphasis on AI literacy underscores its growing role in finance. These challenges will also present opportunities."

Rossouw concluded, "As CFOs explore AI, they will discover strategic insights that drive efficiency and innovation, transforming financial decision-making. By augmenting human capabilities, AI agents will play a crucial role in this transformation, offering personalised support and enhancing team productivity."