Does the EU AI Act ban wealth firms from using AI?

No. Most wealth-management AI, drafting, summarising, internal productivity, is limited-risk under the EU AI Act and carries only Article 50 transparency duties from 2 August 2026. Only a narrow use, scoring the creditworthiness of individual clients, is high-risk under Annex III point 5(b). Classify each system by what it does.

Is MiFID II or the EU AI Act the main rule for AI in wealth?

Both apply, and MiFID II bites first. ESMA's position is that a firm using AI must meet its existing MiFID II conduct, best-interest, and recordkeeping duties; the AI Act adds transparency obligations on top from 2026, it does not replace MiFID II. Map your AI use to MiFID II first, then the AI Act.

How long must we keep records of AI-assisted client work?

At least five years, under MiFID II Article 16(7), for relevant electronic communications. Capture the prompt, the output, the reviewer, and the sign-off, and retain the AI step inside the same evidence chain as the human one. A missing record is a recordkeeping breach independent of the content.

Can we use an AI tool to make a suitability decision automatically?

Not solely. GDPR Article 22 gives a client the right not to be subject to a solely automated decision with significant effects, and a suitability outcome qualifies. Keep a named human able to intervene, express a view, and change the outcome. The model can assemble the case; the firm owns the assessment.

How is the EU different from the UK on AI in wealth?

The substance is close: both demand a named human, a data boundary, and records. The EU routes it through MiFID II, ESMA's 2024 statement, the GDPR, and the EU AI Act; the UK through the FCA's Consumer Duty, SM&CR, SYSC, COBS, and UK GDPR under the ICO. The EU has a codified AI Act; the UK has said it will not write AI-specific rules. --- Serra Education provides process and tooling consulting only, never Serra Wealth investment advice. This article is general information on AI-adoption process and governance. It is not investment, legal, or compliance advice. Each firm is responsible for its own regulatory compliance and for validating any AI output it relies on. No live client data should be placed in any AI workflow that is not contracted and assessed for it. Regulatory positions and timelines can change; confirm current obligations with qualified counsel and against the primary sources before you rely on them.

The most common AI mistakes EU wealth firms make