Scenario 4: Trust shock

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In the fourth scenario, a major failure linked to artificial intelligence undermines public trust. The trigger could be a market disruption caused by correlated trading algorithms, a large fraud using deepfakes, a data breach at a provider of models used by many banks or a discriminatory credit system that harms thousands of clients. Whatever the cause, the reaction is political. Legislators in Switzerland and the European Union adopt restrictive rules, supervisors require extensive approval procedures and institutions withdraw AI tools from client-facing functions.¹

In this scenario, the gains of the technology would be delayed. Institutions that had invested heavily in automation would face costs of reversal, while those that had maintained human processes and strong governance would gain an advantage. Clients would value discretion, personal contact and demonstrable control, qualities that Swiss private banking has long claimed. The parallel with the history of Swiss banking is instructive, because the crises that ended banking secrecy for foreign clients also began as failures of trust and led to rules that transformed the industry. Indicators of this scenario would be a rising number of AI-related incidents, public debates on the liability of providers and political initiatives for moratoria or strict licensing.

Notes

Scenario constructed by the author. On the role of crises in triggering regulatory change, see Part F, Chapter III on the regulatory response to the collapse of Credit Suisse. ↩

For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of August 2025.

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Dr Alexander Ressos, TEP

Rechtsanwalt/Attorney-at-Law

I am a Swiss attorney-at-law and also admitted as a solicitor in Hong Kong and in England & Wales, with almost 25 years of experience.

Together with my multilingual team, including Chinese, Japanese, Korean, Russian, Ukrainian and French native speakers, I advise companies and their owners from around the world on the full range of banking, corporate, commercial and tax law matters in Switzerland, including international tax planning, fiduciary services, and legal family office services including immigration & relocation or real estate investments. My practice has a particular focus on clients from growth and frontier markets in Greater China, Central Asia and the Caucasus, the rest of Asia, the Middle East, Africa and Latin America, and I equally advise clients from Europe and North America. Through an affiliated Swiss trust company, we also take care of the incorporation and ongoing administration of their companies and other structures, including accounting, tax returns and corporate secretarial services, and I serve as a professional director where required. With the support of a network of first-class cooperation partners, I also implement solutions worldwide.

My approach is to act as a trusted advisor who works directly with decision-makers, on an equal footing: I start from what you want to achieve and shape every structure, contract and tax decision around your commercial goals and how it improves your after-tax return. As “lawyers who make it happen”, my team and I stay involved until your company is set up, your structure is in place and your transaction has closed, and we remain available for any follow-on work that may be required. You benefit from bespoke solutions and personal attention, and sound, friendly and practical advice. We are not the lowest-cost provider in the market, nor do we intend to be; our aim is to deliver well-founded, proper solutions and excellent value for money.

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Scenario 4: Trust shock

Notes

Setting up or expanding in Switzerland?