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Harnessing AI for Euro area stability

  • Interdisciplinary Centre for Security, Reliability and Trust (SnT)
    30 September 2025
  • Category
    Press Releases

ESM and University of Luxembourg launch joint Artificial Intelligence research on bond issuance and market intelligence

The European Stability Mechanism (ESM) and the University of Luxembourg’s Interdisciplinary Centre for Security, Reliability and Trust (SnT) kicked off a joint research programme today. The initiative, “AI for Improved Bond Issuance, Causal Methods and Market Intelligence”, will focus on applying advanced techniques in Artificial Intelligence (AI) to address critical challenges.

The collaboration focuses on three ambitious use cases:

  • 1. Advancing bond issuance workflows through AI

    By developing AI-powered tools, the ESM aims to gain efficiency for bond issuance throughout the process, thus improving its capital market operations.

  • 2. Enhancing market responsiveness with automated research insights

    By structuring qualitative market intelligence into an accessible, AI-powered knowledge base, the ESM aims to leverage on market research, past findings, and market dynamics data to inform high-level stakeholders.

  • 3. Driving strategic foresight via causal discovery analysis

    Exploring the deeper causes underpinning market dynamics beyond correlations remains a challenge. The project aims to build an understanding of these dynamics, leveraging on academic research to support strategic high-level decision-making.

“Embracing innovation, and AI in particular, is one of the ESM’s strategic priorities. Our collaboration with the University of Luxembourg’s SnT draws on their proven expertise in delivering impactful research projects for the financial sector and their strong interdisciplinary approach. This partnership offers us an excellent opportunity to harness leading academic knowledge and technology for the benefit of the ESM. I am confident the joint research programme will bring tangible benefits, especially by enhancing the efficiency and quality of our bond issuance processes,” said ESM Managing Director Pierre Gramegna.

Our collaboration with the ESM offers us the rare opportunity to train new AI models that will benefit the financial sector of Europe, thanks to their unique use cases. SnT is based in the heart of the Luxembourg financial centre to enable a close collaboration with the sector, and this partnership showcases our strengths in jumpstarting innovation projects in this field.”
Prof Yves LE TRAON

Prof Yves LE TRAON

Director of the Interdisciplinary Centre for Security, Reliability and Trust

The joint research programme is planned for three years and will be co-financed by both institutions.