Starting in 2027, ESMA will make artificial intelligence and tokenization the initial focus areas of its new pan-European supervisory priority for digital innovation. Under this EU-wide oversight, national regulators will map client use cases, document how these technologies are used in products and processes affecting investors, conduct preliminary reviews of some of the most impacted companies, and develop unified approaches.

USSP: Coordination and Key Risks

The initiative is structured as a Union Strategic Supervisory Priority (USSP), a tool for coordinating national regulators on risks that require attention across the bloc. The list of risks includes biased or misleading AI outputs, investor products that are difficult to understand, and reliance on a limited number of external providers.

Focus on Investor Impact and Disclosures

Supervisory authorities will examine how companies use or plan to use AI and tokenization specifically in processes that directly affect investors. They will also review what firms disclose to investors about new technologies and share examples of innovations that have improved client outcomes, reduced bias, and ensured reliability.

Connection to Existing Priorities

The new focus will operate alongside the USSP on cyber and operational resilience, which has been in place since 2025. The separate priority on ESG disclosures will conclude this year. Every three years, ESMA sets up to two priorities that reflect new trends and market developments in the EU.