The increasing deployment of artificial intelligence in economic decision-making processes is progressively affecting insolvency-related contexts. The EU AI Act establishes a harmonised regulatory framework across the European Union; while it does not bring about any direct changes to substantive insolvency law, it fundamentally redefines the legal requirements for the use of algorithmic systems in insolvency-related contexts. The Act does not aim to control specific industries but rather follows a risk-based approach that focuses on the potential impact of AI systems on fundamental rights and economic participation.
