Company: ADZCF
Filing Date: 2025-03-13
Form Type: 20-F
Source: 0001159508-25-000020
Chunk: 42

Company: DEUTSCHE BANK AKTIENGESELLSCHAFT
Filing Date: 2025-03-13
Form: 20-F
Chunk 42
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 AI technologies are highly reliant on the collection and analysis of large amounts of data and complex algorithms, which may be overbroad, insufficient, or contain biased information. These technologies may also lack transparency of the sources of data used to train or develop them or how inputs are converted to outputs, and the bank cannot fully validate this process and its accuracy. There is also the risk of implementing an AI model that leads to incorrect results. These risks could hinder the bank’s ability to innovate, compete, and grow in an increasingly AI driven market. Consequently, this may result in a weakened market position, reduced operational efficiency, the inability to meet evolving customer expectations and negatively impact Deutsche Bank’s cost base and financial results. Risks Relating to Litigation, Regulatory Enforcement Matters, Investigations and Tax Examinations Deutsche Bank operates in a highly and increasingly regulated and litigious environment, potentially exposing the bank to liability and other costs, the amounts of which may be substantial and difficult to estimate, as well as to legal and regulatory sanctions and reputational harm. The financial services industry is among the most highly regulated industries. The bank’s operations throughout the world are regulated and supervised by the central banks and regulatory authorities in the jurisdictions in which it operates. In recent years, regulation and supervision in a number of areas has increased, and regulators, law enforcement authorities, governmental bodies and others have sought to subject financial services providers to increasing oversight and scrutiny, which in turn has led to additional regulatory investigations or enforcement actions which are often followed by civil litigation. There has been a steep escalation in the severity of the terms which regulatory and law enforcement authorities have required to settle legal and regulatory proceedings against financial institutions, with settlements in recent years including unprecedented monetary penalties as well as criminal sanctions. As a result, it may continue to be subject to increasing levels of liability and regulatory sanctions and may be required to make greater expenditures and devote additional resources to addressing these liabilities and sanctions. Regulatory sanctions may include status changes to local licenses or orders to discontinue certain business practices.

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| Deutsche Bank                   |
| Annual Report 2024 on Form 20-F |

The bank and its subsidiaries are involved in various litigation proceedings, including civil class action lawsuits, arbitration proceedings and other disputes with third parties, as well as regulatory proceedings and investigations by both civil and criminal authorities in jurisdictions around the world. While Deutsche Bank has made significant progress resolving litigation and regulatory enforcement matters, remaining unresolved or new litigation, enforcement or similar matters pending against the bank could result in significant costs against the bank in the near