Vera Esteves Cardoso and Nicole Fortunato author the article on Artificial Intelligence in banking

Vera Esteves Cardoso and Nicole Fortunato are the authors of the article “The Impact of Artificial Intelligence in Banking: between Innovation and Regulation”, published in the latest edition of InforBanca, the magazine of the Instituto de Formação Bancária (IFB).

The article explores how Artificial Intelligence (AI) is transforming the banking sector, highlighting the legal and regulatory challenges that arise from this technological evolution.

The lawyers analyse the impact of AI in key areas such as credit scoring, fraud detection, compliance process automation, and the use of chatbots, emphasising the growing complexity of risk management and supervision in the context of increasingly digital financial services. They particularly highlight the relevance of the new Regulation (EU) 2024/1689 on AI, which sets out strict requirements for high-risk systems — such as those used in credit assessment.

The article draws attention to risks such as algorithmic bias, lack of transparency and technological dependency, and proposes concrete measures such as continuous human oversight, the adoption of reliable models (such as RAG and PEFT), and the use of AI sandboxes to ensure that innovation develops in a responsible, fair and human rights–compliant manner.

Vera Esteves Cardoso and Nicole Fortunato stress the importance of a robust regulatory framework and a human-centric approach, ensuring that the application of AI in banking promotes not only efficiency and personalisation, but also trust, inclusion and sustainability.

Read the full article in InforBanca.