Board of Supervisors, Securities and Markets Stakeholder Group : Summary of Conclusions joint BoS-SMSG meeting - April 2025

Summary of Conclusions 23 May 2025 ESMA24-229244789-5343 Joint meeting of the Board of Supervisors and the Securities and Markets Stakeholder Group Date: 3 April 2025 Time: 14:00h – 17:00h Location: ESMA, 201-203 rue de Bercy, 75012 Paris, France Contact: stakeholders@esma.europa.eu T: +33 1 58 36 43 21 No Item 1. Opening remarks by the ESMA and SMSG Chairs The ESMA Chair and the SMSG Chair opened the meeting and welcomed all participants. 2. Artificial Intelligence Nicholas Pfaff (SMSG) presented some observations from the SMSG on artificial intelligence (AI). He noted the higher risks associated with generative AI as opposed to machine learning and the importance of making clear the distinction between generative AI and machine learning in any definitions. He also highlighted the risks of AI to retail investors, to trading, and to the industry’s knowledge and skills base through the replacement of entry-level jobs. Carlo Comporti (ESMA Board member) outlined the areas that ESMA Board was working on, including on the identification of risks related to AI, capacity building in the authorities to prepare for supervising the use of AI by market participants, and cooperation within ESMA’s Board on the use of SupTech. SMSG members commented on the presentations. They expanded on the potential risks to retail investors of AI generated advice and its potential effect for future staffing. They also gave some examples of the use of AI by professional investors...