The Financial Supervisory Authority of Norway has issued a warning, jointly with the European Securities and Markets Authority, that using artificial intelligence tools for financial investments can be highly risky and may lead to poor decisions and significant losses due to inaccurate or misleading outputs. The alert highlights that many AI tools used for investment activity are language models not designed to provide investment advice and are not supervised by financial regulators, meaning users do not receive the same protections as when dealing with regulated firms. It also notes that such tools may operate in ways even their developers do not fully understand, making it risky to rely on them in complex and unpredictable markets, and stresses that investors should not rely solely on automated tools. The authorities further point to the absence of requirements to meet regulated conduct standards, which can limit access to complaints bodies or alternative dispute resolution if things go wrong, and underline that AI tools cannot predict financial market developments and price movements.
Norwegian Finanstilsynet 2025-03-26
Financial Supervisory Authority of Norway and ESMA warn investors against relying on AI tools for investment decisions
Norway's Financial Supervisory Authority and the European Securities and Markets Authority warn against using AI tools for financial investments due to high risks and potential losses. These unsupervised language models lack regulatory oversight and protections of regulated firms. Authorities stress these tools cannot predict market developments and may operate unpredictably, urging investors not to rely solely on them.