Generative AI Is Entering Finance
Generative artificial intelligence (Gen AI) has quickly become a global talking point. Its ability to create text, code, and synthetic datasets in real time is already reshaping industries. In financial services, the question has long been whether this was hype or reality. In Luxembourg, recent surveys and thematic reviews suggest adoption is moving into practice.
Luxembourg Examples: AI From Reporting to Risk
PwC Luxembourg’s 2025 GenAI and Data Survey showed that 88% of institutions now collect data to improve operational efficiency, with half demonstrating advanced maturity in data governance and privacy. Reported applications include automated regulatory report drafting, internal document analysis, and streamlined back-office workflows.
The CSSF and BCL’s thematic review (2025) covered 461 financial institutions and identified concrete use cases of AI—including generative models—in fraud detection, compliance documentation, and regulatory reporting. The review stressed the need for human oversight, explainability, and auditability in every deployment.
Client Communication and Transparency
GenAI is also being tested in customer-facing functions. Banks and asset managers are experimenting with AI to draft multilingual portfolio summaries, generate scenario-based educational content, and respond instantly to client queries. These applications are particularly relevant in Luxembourg’s cross-border ecosystem, where clients expect fast and multilingual service.
Governance, Risk, and the Data Act
Opportunities are significant, but so are the risks. Poor data quality, unverified models, or lack of human supervision can amplify bias and erode trust. The CSSF highlights the importance of governance and transparency in all AI initiatives.
A major regulatory shift reinforces this. The EU Data Act, applicable since 12 September 2025, sets new obligations for data sharing, portability, and switching between providers. For finance, this means access to broader datasets under stricter compliance. GenAI tools capable of integrating diverse data streams while maintaining audit trails will be better positioned to thrive.
Expertise and Implementation Support
Deploying GenAI is not just about technology. Success requires expertise in finance, regulatory compliance, and IT governance. Institutions often rely on external specialists to bridge these domains. Platforms like We Put You in Touch connect institutions with independent consultants who bring complementary skills—risk specialists, data scientists, compliance advisors, and digital architects. This diversity enables financial institutions to turn AI pilots into sustainable, compliant solutions.
From Hype to Reality
Generative AI in finance is no longer limited to experiments. Luxembourg’s financial sector is already adopting it in compliance, client communication, and risk management—under regulatory scrutiny. The institutions that combine innovation with governance will move fastest from hype to real value, transforming data into trust.
References
- PwC Luxembourg – GenAI & Data Survey 2025
- CSSF & BCL – Thematic review on AI in the Luxembourg financial sector (2025)
- PwC Luxembourg – AI adoption in risk and finance functions
- McKinsey – GenAI in banking and risk management
- Deloitte Luxembourg – GenAI and digital transformation for fund services
- European Banking Authority – Artificial intelligence in the financial sector
- CSSF – Guidelines on ICT risk and DORA implementation
- EU – Data Act (in force since September 2025)on the financial data access and payments package (PDF)