ESMA to focus on AI and tokenization oversight for EU markets by 2027

The European Securities and Markets Authority (ESMA) announced a new supervisory priority for 2027, requiring national regulators across the EU to assess how financial firms use artificial intelligence and tokenization in client-facing products and services. Supervisors will catalog deployments, conduct initial checks on affected firms, and evaluate risks such as biased AI outputs, investor comprehension gaps, and overreliance on third-party tech providers. The initiative runs alongside ESMA’s cyber resilience priorities under the Digital Operational Resilience Act (DORA).