The European Securities and Markets Authority will launch a new Union Strategic Supervisory Priority focused on digital innovation, with an initial focus on artificial intelligence and tokenisation.

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The move follows ESMA's recent review of AI use among financial firms. The regulator found that 87% of the 847 AI use cases reported by EU securities firms were for internal activities, while 10% involved customer relationship tools and 3% involved investment services.

ESMA said the priority will help supervisors build the expertise and capacity needed to oversee the use of new technologies while protecting investors and maintaining safeguards.

AI Oversight Joins Existing Priorities

As part of the work, ESMA will cooperate with National Competent Authorities to examine how supervised entities use AI and tokenisation. The regulator said it will remain flexible as new technological developments emerge.

The digital innovation priority will run alongside ESMA's USSP on cyber and operational resilience, which has been in place since 2025.

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Going forward, ESMA said it will continue its work and coordination on challenges arising from new technologies, including those linked to advanced models such as frontier AI.

The digital innovation focus comes as ESMA ESMA European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t Read this Term concludes its USSP on ESG disclosures this year. The ESG priority was launched in 2023.

ESMA Concludes ESG Supervisory Priority

ESMA said it has made progress in improving ESG disclosures and helping investors better understand sustainability information and receive quality advice.

While the dedicated ESG priority is ending, the regulator said ESG remains a long-term area of work.

USSPs are ESMA's supervisory convergence tools for addressing high-risk areas of strategic importance across the European Union.

They help direct supervisory resources towards risks that matter most for investor protection, financial stability and the orderly functioning of EU financial markets.