The EU AI Act, introduced on 2 February 2025, marks a pivotal moment in corporate finance, particularly impacting CFOs, treasurers, and their teams. This date signifies the beginning of the implementation of a comprehensive regulatory framework governing the use of artificial intelligence (AI) across the EU. The EU AI Act aims to ensure that AI technologies are used ethically and transparently, introducing a range of compliance requirements that finance professionals must navigate over time.
While the act introduces key provisions, it is important to note that the full regulatory framework will be phased in over time. Major obligations, particularly for high-risk systems, will not take effect until August 2026 and beyond. This phased approach allows companies to gradually adapt to the new regulations, providing them with the necessary time to align their AI strategies and compliance measures with the act’s requirements.
This broad reach means that multinational corporations must confirm their AI practices align with the EU's requirements, regardless of where their headquarters are located
The 2 February deadline is important because it compels companies to begin reassessing their AI strategies and compliance measures. For treasurers and finance teams, this means an increased focus on the transparency and accountability of AI systems used for financial operations, such as payments and fraud detection.
Treasurers need to make sure that AI-driven financial models and forecasting tools are compliant with the new standards, which emphasise ethical use and bias mitigation. This involves rigorous validation of AI models to ensure they provide fair and unbiased results, necessitating collaboration with data scientists and AI specialists.
The EU AI Act primarily affects companies operating within the European Union; however, its implications extend beyond EU borders. Any UK or US companies with trading subsidiaries in the EU are subject to these regulations.
This broad reach means that multinational corporations must confirm their AI practices align with the EU's requirements, regardless of where their headquarters are located. For these companies, failure to comply could result in significant financial penalties and reputational damage, making it imperative for them to align their AI strategies with EU standards.
The act also emphasises the importance of AI literacy among finance professionals, underscoring the growing role of AI in finance
The act categorises AI applications into different risk levels, and it is important to note that certain finance-related AI applications, such as those used for creditworthiness assessments and insurance risk pricing, are explicitly classified as high risk. These applications are subject to stringent compliance measures due to their significant potential impact on individuals and the financial system.
For treasurers and finance teams, this classification requires a thorough evaluation of their AI systems to make sure they meet the applicable risk level criteria. Compliance involves robust documentation processes, regular audits, and validation of AI models to ensure they operate fairly and without bias.
Transparency requirements for general-purpose AI providers will commence on 2 August 2025. This increased visibility into AI models is expected to boost CFOs’ confidence in utilising AI for strategic decision-making.
The act also emphasises the importance of AI literacy among finance professionals, underscoring the growing role of AI in finance. This necessitates ongoing education and training for finance teams to guarantee they can effectively leverage AI technologies.
For treasurers, the EU AI Act presents both challenges and opportunities. While compliance can be demanding, the structured framework can facilitate the adoption of more robust and reliable AI systems. This transition can lead to enhanced accuracy in financial forecasting and risk management, ultimately supporting more informed decision-making processes.
Furthermore, as AI agents become integral to financial operations, they can automate routine tasks, allowing treasurers to focus on strategic initiatives that drive growth and innovation. Trusted partners like Kyriba can act as a sherpa on this journey, guiding finance teams through the complexities of compliance and helping them leverage AI's full potential for future success.
The EU AI Act is reshaping the landscape for finance professionals, particularly affecting treasurers and wider finance teams. The act marks the beginning of a new regulatory era, requiring companies with EU ties to adapt their AI practices. By embracing these changes, finance teams can unlock new strategic insights and drive efficiency, transforming financial decision-making and positioning themselves for future success.
Morné Rossouw is chief AI officer at liquidity performance platform provider Kyriba. Disclaimer: the views and opinions expressed in this article are those of the author and not necessarily those of the ACT.