Artificial intelligence and EU insider regulation

Abstract The increasing use of artificial intelligence (AI) and big data in capital markets presents significant challenges for the Market Abuse Regulation (MAR), which was originally designed with human decision-making and conventional algorithmic systems in mind. As the rise of AI enable increasingly autonomous trading through self-learning algorithms, substantial legal uncertainty arises regarding the attribution of inside information, liability for AI-driven transactions, and the scope of the insider trading prohibition under Article 8 MAR. This article examines whether, and to what extent, autonomous insider trading falls within the scope of the existing legal framework. In particular, it analyses the role of Article 9(1) MAR and explores, whether a teleological extension or application by analogy could support the recognition of a ‘compliance by design’ defence for both legal and natural persons deploying AI systems. This article further considers the use of AI in fulfilling issuers’ public disclosure obligations under Article 17 MAR, especially with regard to the identification of inside information and the detection and mitigation of deepfakes. Finally, it addresses the extent to which enforcement mechanisms and organizational obligations under Directive 2014/65/EU (MiFID II) and MAR may need to be adapted in order to safeguard informational fairness in increasingly AI-driven capital markets.