(L-R) John Morton, Government and Regulatory Specialist at Bloomberg; Pierre Gramegna, Managing Director of the ESM; Credit: Elza Osmane, Chronicle.lu

On Wednesday 22 October 2025, Bloomberg held the sixth edition of the Luxembourg Investment Summit at the Philharmonie Luxembourg, gathering leading investors, financial executives, policymakers and regulators in the Grand Duchy.

The programme focused on how innovation and artificial intelligence (AI) are reshaping the future of finance, influencing market outlooks and regulation, while emphasising responsible use and strengthening client-focused strategies across Europe’s banking and investment sectors.

Among the speakers was Claude Marx, Director General of the CSSF financial regulator. He reflected on the growing role of AI in finance, recalling previous periods of financial innovation brought by fintech and neobanks.

Claude Marx mentioned a joint CSSF and Banque Centrale du Luxembourg (BCL) survey published earlier this year, which gathered responses from 461 financial institutions, representing an 86% participation rate across Luxembourg’s financial sector.

According to the survey, numerous institutions are already testing or deploying AI tools, with most use cases focused on internal efficiency improvements. The report also noted ongoing challenges around data quality, protection and governance, along with challenges in explaining how AI systems make decisions.

During the speech, Claude Marx underlined the need for strong governance, data quality and security measures as financial institutions integrate AI into their operations. He concluded: “Should we be afraid of AI? Not at all. We are facing an economic revolution and should embrace it.”

Later in the day, the discussion “Europe’s Strategic Awakening: Stability, Sovereignty, and the Role of the ESM” featured Pierre Gramegna, Managing Director of the European Stability Mechanism (ESM), and John Morton of Bloomberg, who discussed Europe’s resilience and financial stability.

Pierre Gramegna provided insights from recent International Monetary Fund (IMF) annual meetings, noting that European economies have shown greater resilience than expected. He pointed out inflation risks connected to excess liquidity, growing AI investment and the rise of stablecoins, emphasising the need to monitor digital currencies and their impact on financial stability.

He reaffirmed the ESM’s readiness to safeguard euro area stability and confirmed that Bulgaria is set to join the euro area and the ESM in 2026, describing the expansion as “a sign of Europe’s continued financial integration”.

Preparedness is key. Having the right tools, governance and capital structures ensures Europe can face emerging challenges with confidence,” said Pierre Gramegna.

Speakers agreed that while no new AI-specific rules are expected for Luxembourg’s financial sector, the technology will play an increasingly central role in shaping Europe’s competitiveness and financial landscape.

EO

(Pictured: Claude Marx, General Director of the CSSF; Credit: Elza Osmane, Chronicle.lu)