The EU AI provisions reportedly went into force on 2 February, 2025.
Diyan Bogdanov, Director of Engineering Intelligence & Growth at Payhawk, the global spend management solution and Bulgaria’s “first” unicorn, explains that the EU AI Act isn’t “just another compliance burden — it’s a framework for building better AI systems, particularly in financial services.”
Diyan Bogdanov of Payhawk explained that by classifying finance applications like credit scoring and insurance pricing as “high-risk,” the Act acknowledges what they’ve long believed: when it “comes to financial services, AI systems must be purposeful, precise, and transparent.”
Bogdanov added that we’re already seeing this play out in the market.
They also mentioned that while some chase the allure of general-purpose AI, leading financial companies “are embracing what we call ‘right-sized’ AI, focusing on ‘targeted automation’ through AI agents and/or the deployment of smaller-scale models — all within robust governance frameworks.”
According to the Payhawk executive, the path forward in financial services is clear: success will come “not from ambitious AI claims but from focused, practical implementation that puts security and reliability first.” This may be true considering all the hype and potential misinformation circulating about what artificial intelligence algorithms can and can’t do at this stage of their development.
They claimed that Europe is setting the global standard for “how AI should work in financial services — and it’s exactly what the industry needs.”
They also shared:
“While the US and China compete to build the biggest AI models, Europe is showing leadership in building the most trustworthy ones. The EU AI Act’s requirements around bias detection, regular risk assessments, and human oversight aren’t limiting innovation — they’re defining what good looks like in financial services AI.”
Bogdanov concluded:
“This regulatory framework gives European companies a significant advantage. As global markets increasingly demand transparent, accountable AI systems, Europe’s approach will likely become the de facto standard for financial services worldwide.”