The Fintech industry had introduced risk management requirements for the intersection of technology and finance. Artificial Intelligence, being the most talked about technology in force, has been the assumed technology enabler, whilst financial regulations such as the developing Basel III, are in the forefront of financial security. 

The introduction of the AI Act has highlighted the fact that all AI Assets, such as in an Artificial Intelligence driven economy, is not a risk-free undertaking, whereas if an AI company issues Tier 1 Assets as per Basel III requirements, such as Equity or Bond, it should not automatically become a Tier 1 Asset for Capital Requirements of the fulfilling financial institute. The Global Financial crises has highlighted this difference, as many of financial institutes were known to hold assets closely related to the AI technology, that eventually would have failed and causing this disruption. 

This issue indeed highlights a shortcoming of Basel III regulations that classifying the type of Assets, such as Equity and Bonds, as being Tier 1 Capital, whereas the underlying company that issues such Bonds and Equities may well be a very high risk venture, as a Medical AI Company.

The passing of the AI Act, puts some light on the still unresolved question of Tier 1 Capital, and hopefully the Act can suggest that not all Equities and Bonds can be classified as Tier 1 Capital, in a high-tech and advancing economy, that deals with AI.