The CSSF adopts Clarence to develop artificial intelligence with full sovereignty: a major breakthrough for the financial sector

Luxembourg, 2 December 2024

The Commission de Surveillance du Secteur Financier (CSSF) has signed a strategic agreement on artificial intelligence with Clarence, Luxembourg's sovereign air-gapped cloud designed to meet the needs of businesses, administrations, and public institutions. Clarence's solution will enable the CSSF to leverage and apply cutting-edge technologies to its sensitive data while ensuring confidentiality, complete control and full sovereignty. This agreement marks the beginning of an ambitious project to enhance the efficiency of the CSSF's internal processes while meeting current regulatory requirements.

Claude Marx, Director General of the CSSF, welcomed the initiative: "This partnership with Clarence is a significant step in the CSSF's digital transformation. It enables us to better process an increasing volume of data, refine risk analyses, and generally increase the efficiency of our work. In the future, artificial intelligence will be key not only for the financial sector under the CSSF's supervision but also for the CSSF itself."

Jean-Pierre Faber, Director of CSSF Operations, added: "Accessing the Google platform and AI-related tools will enable the CSSF, both internally and externally, to enhance critical analyses in prudential supervision, as well as modernise its administrative practices and interactions with market players and international groups operating in Luxembourg, respectively."

A strategic collaboration reinforced by LuxConnect and Proximus Luxembourg
The agreement benefits from the support of LuxConnect, Clarence's principal shareholder and a key player in Luxembourg's tech landscape, as well as Proximus Luxembourg, a strategic co-shareholder and committed partner in digital innovation. Thanks to the trust established by the joint participation of the Luxembourg State and Proximus' technological expertise, Clarence stands out as a unique partner for public and private institutions seeking to combine sovereignty with innovation, without compromising security, resilience, and digital trust.

Paul Konsbruck, CEO of LuxConnect, emphasised: "This collaboration with the CSSF demonstrates the relevance and reliability of our solution. Clarence goes beyond providing a technological service; it embodies a vision of trust and sovereignty supported by the Luxembourg state, ensuring an unparalleled level of assurance for strategic institutions. We believe this example will set a new standard for the entire financial sector."

Gérard Hoffmann, CEO of Proximus Luxembourg, added: "We are delighted by the CSSF's trust in this innovative air-gapped cloud solution, the result of a multi-year collaboration between LuxConnect and Proximus Luxembourg. We also value the technological partnership with Google Cloud, which allowed us to pioneer this solution in the Benelux market. Today marks a new chapter in the story of sovereign innovative platforms in Luxembourg, especially with this first prestigious client like the CSSF. This strategic investment, radiating from Luxembourg, demonstrates the Proximus Group's commitment to strengthening its role as a leader in sovereign technology solutions."

Towards an ambitious AI roadmap
An internal CSSF task force has started identifying an initial list of pilot projects to be deployed in the first quarter of 2025. The goal is to integrate artificial intelligence into critical processes to enhance performance, transparency and efficiency while improving interactions with the public and supervised entities.

To achieve this, Clarence will support CSSF staff with technical assistance and offer innovative tools and use cases based on Google's advanced technologies, ensuring maximum security of the CSSF's data. The CSSF will fully manage its own air-gapped cloud on dedicated infrastructure, maintaining complete control over its data.

Pascal Rogiest, General Manager of Clarence, stated: "This partnership with the CSSF paves the way for responsible and efficient digital transformation now that Clarence is fully operational. We are honored to contribute to the CSSF's evolution as a pioneer in AI and generative AI, and by extension, to this positive advancement for Luxembourg's financial sector. Our collaboration with the CSSF is not just a technological project; it's a shared vision of the financial sector's future, where digital trust, fully sovereign cloud, and artificial intelligence converge into a cohesive and secure whole within today's geopolitical context."

This partnership is expected to have a significant impact beyond Luxembourg, positioning Clarence and its partners as leaders in technological innovation in the financial sector and ultimate sovereign cloud solutions. It demonstrates that Clarence is the most robust existing technological solution for securing and controlling sensitive data.