Tag: Europe

Decoding the EU AI Act: What it Means for Financial Services Firms | Blog

How will the EU AI Act impact the financial services sector, and how should enterprises and service providers structure their compliance activities? Read on to learn about what this new legislation means for financial services firms looking to implement AI tools, or get in touch to understand the direct impact on your specific business.

In recent years, the rapid advancements in artificial intelligence — in particular, generative AI — have revolutionized various sectors, including financial services. Technology giants such as Microsoft, Google, Amazon, and Meta have heavily invested in developing AI models and tools. However, this unprecedented growth has also raised concerns about the potential risks associated with the unchecked use of AI, prompting the need for regulations to ensure the responsible development and deployment of these powerful technologies.

Recognizing the urgency of the situation, the European Union has taken a proactive step by introducing the AI Act, a pioneering piece of legislation that aims to establish a comprehensive framework for the development and use of trustworthy AI systems. The Act adopts a risk-based approach, categorizing AI systems into four distinct levels:

  • Unacceptable risk – Systems deemed a serious threat, such as predictive policing, real-time biometric identification systems, and social scoring and ranking are banned
  • High-risk – Systems with potential to harm people or fundamental rights, such as AI-powered credit assessments, require strict adherence to new rules regarding risk management, data training, transparency, cybersecurity, and testing. These systems need to register with a central EU database before distribution
  • Limited risk – Systems posing minimal risk, such as chatbots, need to comply with “limited transparency obligations,” such as labeling AI-generated content
  • Low or minimal risk – While not mandated, the Act encourages providers to follow a code of conduct similar to high-risk systems for market conformity

The AI Act and financial services

The financial services industry heavily relies on AI, from personalized banking experiences to fraud detection. The high-risk applications especially require financial institutions to prioritize the following:

  • Continuous risk management – Focus on health, safety, and rights throughout the AI lifecycle, including regular updates, documentation, and stakeholder engagement
  • Comprehensible documentation – Maintain clear, up-to-date technical documentation for high-risk systems, including characteristics, algorithms, data processes, risk management plans, and automatic event logging
  • Human oversight and transparency – Maintain human oversight throughout the AI lifecycle and ensure clear and understandable explanations of AI decisions
  • Rigorous governance – Implement robust governance practices to prevent discrimination and ensure compliance with data protection laws
  • Fundamental rights impact assessment – Conduct thorough assessments to identify and mitigate potential risks to fundamental rights
  • Data quality and bias detection – Ensure training and testing datasets are representative, accurate, and free of bias to prevent adverse impacts
  • System performance and security – Ensure consistent performance, accuracy, robustness, and cybersecurity throughout the lifecycle of high-risk AI systems

To align with the EU AI Act, enterprises must take a structured approach. First, they should develop a comprehensive compliance framework to manage AI risks, ensure adherence to the Act, and implement risk mitigation strategies. Next, they need to take inventory of existing AI assets like models, tools, and systems, classifying each into the four risk categories outlined by the Act. Crucially, a cross-functional team should be formed to oversee AI risk management, drive compliance efforts, and execute mitigation plans across the organization. By taking these steps, enterprises can future-proof their AI initiatives while upholding the standards set forth by the landmark regulation.

Final Everest Group Decoding the EU AI Act What it means for financial services
Opportunities for service providers

  • AI governance expertise – Service providers can offer expertise in building and implementing AI governance frameworks that comply with the EU AI Act. This includes developing policies, procedures, and tools for responsible AI development and deployment
  • Data management solutions – Service providers can assist financial institutions in managing their data effectively for AI purposes. This includes data cleaning, labeling, and ensuring data quality and compliance
  • Large Language Model operations (LLMops) – As financial institutions explore the use of Large Language Models (LLMs), service providers can provide expertise in LLMOps, which encompasses the processes for deploying, managing, and monitoring LLMs
  • Use case classification & risk management – Service providers can help financial institutions classify their AI use cases according to the EU AI Act’s risk framework, and develop appropriate risk management strategies
  • Quality Management System (QMS) – Implement a robust QMS to ensure the AI systems consistently meet the Act’s requirements and other emerging regulatory standards

The road ahead

As the AI Act progresses through the legislative process, financial institutions and service providers must proactively prepare for the upcoming changes. This includes conducting AI asset inventories, classifying AI systems based on risk levels, assigning responsibility for compliance, and establishing robust frameworks for AI risk management. Service providers will play a crucial role in supporting financial institutions in their compliance efforts.

To learn more about the EU AI Act and how to achieve compliance with the regulations, contact Ronak Doshi, [email protected], Kriti Seth, [email protected] and Laqshay Gupta, [email protected]. Understand how we can assist in managing AI implementation and compliance, or download our report on revolutionizing BFSI workflows using Gen AI.

ABSL DACH’s 10th Member Meeting | Conference


ABSL DACH's 10th Member Meeting: AI & Gen AI in GBS

June 24-25, 2024

Catch Everest Group Partner, Rohitashwa Aggarwal, at ABSL DACH’s 10th Member Meeting in Hamburg, Germany. Rohitashwa will join an exciting line up of speakers to present his insights on AI and generative AI in GBS.

Learn more about ABSL DACH

Aggarwal Rohitashwa B
Rohitashwa Aggarwal
Partner, Everest Group

Application Transformation Services PEAK Matrix® Assessment 2024 – Europe

Application Transformation Services – Europe

As customers’ needs evolve and businesses strive for greater efficiency, the importance of application transformation has substantially increased for enterprises. Enterprises are actively embracing transformation efforts to fully leverage emerging technologies and transition from outdated legacy systems. Amid ongoing macroeconomic uncertainty, European enterprises are prioritizing application transformation initiatives to unlock business value at every stage of their transformation. Furthermore, there is a persistent emphasis on sustainability, compliance, and regulatory adherence.

In response, service providers are enhancing their offerings through strategic partnerships with technology and platform providers and developing IPs to maximize RoI and gain enterprise confidence. Additionally, they are making substantial investments to expand their regional delivery centers in Europe to strengthen local service delivery and ensure better proximity to customers.

Application Transformation Services

What is in this PEAK Matrix® Report

 In this report, we examine the dynamics of the European application transformation service provider landscape and assess 26 application transformation service providers featured on Everest Group’s Application Transformation Services PEAK Matrix® – Europe. The study will enable buyers to choose the best-fit provider based on their sourcing considerations, while providers will be able to benchmark their performance against each other. 


In this report, we examine:

  • Everest Group’s services PEAK Matrix® evaluation of 26 application transformation service providers
  • The characteristics of Leaders, Major Contenders, and Aspirants in the provider landscape
  • Providers’ key strengths and limitations


  • All industries
  • Geography: Europe
  • The assessment is based on Everest Group’s annual RFI process for the calendar year 2023, interactions with leading application transformation service providers, client reference checks, and an ongoing analysis of the application transformation services market

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What is the PEAK Matrix®?

The PEAK Matrix® provides an objective, data-driven assessment of service and technology providers based on their overall capability and market impact across different global services markets, classifying them into three categories: Leaders, Major Contenders, and Aspirants.

LEARN MORE ABOUT Top Service Providers

EU Parliament Approves AI Act: Food Manufacturers Face Smooth Transition but Consumers Left Exposed | In the News

The European Parliament voted overwhelmingly in favor of the EU AI Act. The impacts of this new law on food manufacturers will likely be relatively minimal as the industry’s current use of AI systems will mostly fall into the “Limited risk” category. However, the European Consumer Organisation (BEUC) warns consumers remain insufficiently protected by the AI Act.

EU countries are set to approve the AI Act in May, but the law will not apply until 2026. This two-year implementation period creates problems, according to Nitish Mittal, Partner at Everest Group, as the law could become outdated.

Read more in Food Ingredients 1st.

Trust & Safety Summit UK | Conference


trust & safety summit uk

13-14 March, 2024

Catch Everest Group’s Abhijnan Dasgupta on a panel discussion at the Trust & Safety Summit UK. His session is titled “What’s Next for Trust & Safety Professionals?”

Abhijnan will join other experts to explore the future landscape of trust and safety, identifying key trends, challenges, and opportunities that lie ahead.

The panel will explore topics such as:

  • What the future of digital platforms and online threats and harms will look like
  • How to measure the success and change of impending regulations
  • Ways to assess how Trust & Safety professionals can futureproof their operations
  • How Trust & Safety will evolve as generative AI, Web 3.0, and Metaverse platforms become more prominent
  • What will happen for Trust & Safety leaders if we do not see transformative change in light of new regulations?
Dasgupta Abhijnan
Abhijnan Dasgupta
Practice Director, Everest Group

EU AI Act Sets Global Standard for Managing AI | In the News

The European Parliament passed some of the world’s first comprehensive AI regulations Wednesday, meaning that enterprise businesses will need to start taking steps toward compliance. The European Union’s AI Act regulates the technology by placing AI models into buckets of risk ranging from minimal risk to unacceptable risk.

The risk-based approach outlined in the EU AI Act is “unique,” said Nitish Mittal, Partner at Everest Group. The approach addresses some of the AI paranoia attached to the growing use of large language models.

Read more in Tech Target.

AI Act Gets Final Nod in European Parliament: Does It Go Far Enough? | In the News

The European Parliament passed the AI Act, with the landmark ruling setting the standards for AI governance in the European Union. But does it go too far, or not far enough?

Nitish Mittal, Partner at Everest Group, said “There are concerns about how the EU AI Act might prevent exponential innovation in AI in Europe, compared to the strides being made by US and Chinese companies and governments”. Mittal also agreed that the AI Act’s risk management framework is “nuanced, as it looks at risks throughout the design and development process, considering impacts on safety, privacy, and fundamental rights.”

Read more in Cybernews.

EU AI Act Passes: How CIOs Can Prepare | In the News

The European Union passed its sweeping AI Act, which will establish tough guidelines and penalties for businesses using artificial intelligence.

“This law is the most definitive stab at governing this AI monster,” Nitish Mittal, Partner with Everest Group, tells InformationWeek in an interview. “I believe this is going to have a ‘halo effect’ for other regions”, he added.

Read more in InformationWeek.

EU AI Act Sets Global Standard for Managing AI | In the News

The European Parliament passed some of the world’s first comprehensive artificial intelligence regulations Wednesday, meaning that enterprise businesses will need to start taking steps toward compliance.

The risk-based approach outlined in the EU AI Act is “unique,” said Nitish Mittal, Partner at Everest Group. “It allows you to take an appropriate measure for the appropriate level of risk,” Mittal said.

Read more in Tech Target.

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