Skadden's comprehensive analysis examines how the EU AI Act will govern financial services from 2024 while U.S. regulators rely on existing frameworks and guidance rather than new AI-specific legislation. The report details critical regulatory concerns including data quality, model risk, governance challenges, and consumer protection as 79% of UK financial firms have deployed machine learning applications beyond pilot phases. This authoritative assessment demonstrates the divergent regulatory approaches across jurisdictions and highlights the industry demand for harmonized international standards as financial institutions navigate complex compliance requirements.