Jul 2026· Law, Ethics & Technology· pp. 1-15· 0 citations· 15 references
TL;DR
For systemically significant financial actors, the combined operation of these two regimes together with the EU Charter of Fundamental Rights produces what it terms a regulatory trilemma: a three-cornered tension.
Abstract
: The European Union has enacted two landmark frameworks that impose partially divergent obligations on financial entities deploying artificial intelligence (AI) in cybersecurity. The AI Act (Regulation (EU) 2024/1689) establishes a risk-based classification system subjecting AI systems to graduated transparency, explainability, and human-oversight duties. The Digital Operational Resilience Act (DORA, Regulation (EU) 2022/2554) requires financial entities to maintain robust Information and Communication Technology (ICT) risk-management capabilities, including rapid, automation-capable threat detection and incident response. This article argues that, for systemically significant financial actors, the combined operation of these two regimes together with the EU Charter of Fundamental Rights produces what it terms a regulatory trilemma: a three-cornered tension
This research presents an analysis of a fundamental problem in contemporary digital regulation, namely the need to ensure the transparency of algorithmic systems, maintain a high level of user cybersecurity, and foster technological innovation. The research focuses on the implementation of the EU Artificial Intelligenc...
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Public organisations are increasingly using Artificial Intelligence (AI) and Algorithmic Decision-making Systems (ADSs), but the rules and governance requirements that apply to them remain spread across different legal and risk-management frameworks. This study analyses the European Union (EU) AI Act, the General Data...
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