Abstract

This paper examines the significant implications of the European Union’s Artificial Intelligence Act (EU AI Act) for US and other non-EU financial technology firms involved in developing or deploying AI systems within the EU. The Act’s risk-based classification and stringent compliance obligations present considerable regulatory and operational hurdles for AI applications in crucial financial services like credit scoring and algorithmic trading. The analysis details how requirements for conformity assessments, data governance, human oversight, and auditability impact these applications. Furthermore, the paper evaluates the contrasting regulatory philosophies of the EU and the US, offering strategic recommendations for firms and policymakers navigating this transatlantic AI governance landscape. Given the EU’s growing regulatory influence, proactive compliance is essential for non-EU firms to avoid market exclusion. The paper concludes with policy considerations aimed at balancing regulatory rigor with advancing innovation.

Keywords: Artificial intelligence, EU AI Act, Compliance, Fintech, Regulation, Risk management, Auditing, Transatlantic policy