TLDR: The Bank of Finland and the Finnish Financial Supervisory Authority (FIN-FSA) jointly hosted a seminar on November 5, 2025, focusing on the practical applications and profound impact of artificial intelligence across the economy, the financial sector, and financial supervision. Experts emphasized moving beyond AI hype to demonstrate tangible value, highlighting its role in forecasting, risk management, fraud prevention, and supervisory efficiency, while also addressing challenges like ‘AI hallucinations’ and the need for strategic European investment in AI development.
Helsinki, Finland – On November 5, 2025, the Bank of Finland and the Finnish Financial Supervisory Authority (FIN-FSA) convened a significant seminar titled ‘Impact of AI on Economy, Finance and Supervision’. This event, part of their shared Data Economy initiative and aligned with the Bank’s strategic priority ‘Data and AI in the economy and workplace’, brought together experts from central banks, supervisory authorities, and the financial sector to explore the real-world applications and future trajectory of artificial intelligence.
Tuomas Välimäki, Member of the Board of the Bank of Finland, opened the seminar by stressing the importance of moving ‘from big promises to concrete benefits’. He stated, ‘We will do our best to avoid the hype, and instead demonstrate, through practical examples, the real added value that AI brings and can potentially bring us.’ Välimäki also underscored the foundational importance of ‘Cybersecure solutions and trust in financial services’ for a resilient economy and financial system.
The seminar showcased various practical examples of AI implementation. The Bank of Finland, for instance, has been utilizing a ‘machine-learning robot economist’ for several years. This AI tool forecasts Finnish GDP growth using the latest data in a nowcasting model and independently publishes its forecasts on social media, having tweeted nearly a hundred times in 2020. Välimäki humorously noted the benefits of an economist ‘who never asks for a coffee break or a pay rise,’ while also acknowledging the need to assess its overall usefulness.
Beyond forecasting, AI’s transformative potential in the financial sector extends to risk management, service development, and fraud prevention. AI applications are revolutionizing how financial institutions identify and mitigate risks, detect sophisticated fraud patterns, and enhance operational efficiency. In financial supervision, AI is poised to automate numerous tasks, improve data analysis, and enable supervisors to undertake processes previously deemed too time-consuming or impossible.
However, the discussions also highlighted critical challenges. Experts emphasized the necessity of understanding how AI models function and recognizing instances of ‘AI hallucinations,’ which, unlike human errors, can occur with ‘great confidence,’ posing both impressive and dangerous implications. The seminar also touched upon the broader economic impacts, noting that AI tools are driving a new kind of structural change in the Finnish labor market. While they automate tasks previously beyond automation, including services and expert roles, they also create demand for new skills, necessitating investments in new tools, systems, and employee competencies.
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A key takeaway from the seminar was the imperative for Europe to maintain pace with AI development to avoid over-reliance on other jurisdictions. This requires significant investment, education, and innovation, with the European Commission actively supporting initiatives in this area. The event concluded with a summary of findings from a recent FIN-FSA survey on AI use in the financial sector, reinforcing the message that AI is not merely a technological advancement but a fundamental force reshaping the global economy and its regulatory landscape.
