ESMA to prioritize EU-wide AI and tokenization supervision in 2027
ESMA will make AI and tokenization the first focus of a new EU-wide supervisory priority on digital innovation starting in 2027. National supervisors will map where tokenization is emerging, track how firms use or plan to use AI and tokenized products in investor-facing services, and carry out initial checks on selected firms. The aim is to build supervisory expertise and promote common approaches as these technologies spread across financial services. ESMA highlighted risks such as biased or misleading AI outputs, products that investors may not understand well, and dependence on a small number of third-party providers. Supervisors will also review how firms disclose emerging technologies to investors and share examples of innovations that improve outcomes, reduce bias, and produce reliable results. The priority will run alongside the existing cyber and operational resilience priority.
