The Luxembourg Commission de Surveillance du Secteur Financier (CSSF) and the Central Bank of Luxembourg (BCL) published their second thematic report on the use of artificial intelligence (AI) in Luxembourg’s financial sector, focusing on the growing prevalence of Generative AI (GenAI) and associated risks. The report draws on a survey conducted between June and August 2024 and includes an initial analysis of how reported AI use cases may be classified under the EU AI Act, highlighting areas needing further consideration. Based on responses from 461 financial institutions and an 86% response rate, the report covers investment firms, authorised investment fund managers, credit institutions, e-money institutions, and payment institutions, representing more than a threefold increase in participation compared with the 2023 survey. It analyses digital strategies and investment in innovative technologies, organisational and technical arrangements supporting AI adoption, and reported use cases with a comparative overview of GenAI and machine learning applications, alongside trustworthiness elements such as bias management, explainability, auditability, and human oversight.