FCA responds following AI and machine learning consultation

Update

In Discussion Paper DP5/22 – Artificial Intelligence and Machine Learning, issued jointly with the Bank of England, the FCA requested input on what role supervisory authorities should have in supporting the safe and responsible adoption of AI in UK financial services.

The regulator has now issued a feedback statement summarising the responses received, identifying key themes and sharing its latest thinking on the following:

• The potential benefits and risks associated with AI in UK financial services
• How the current regulatory framework applies to AI
• Whether additional clarification of existing regulations might be helpful
• How policy can best support further safe and responsible AI adoption.

The FCA suggests its feedback statement will be of interest to:

• Financial services firms regulated by the supervisory authorities (both dual and solo-regulated)
• Non-regulated financial services firms
• Professional services firms like accountants and auditors
• Law firms
• Third parties such as technology companies
• Trade associations and industry bodies
• Standard setting organisations
• Academics
• Civil society organisations.

The FCA and the Bank of England issued DP5/22 to help them build a fuller understanding and a deeper dialogue on how AI might affect their respective objectives. The discussion paper set out their views on the issues surrounding the use of AI and machine learning in UK financial services. It formed part of a wider programme of FCA work relating to AI, including the AI Public Private Forum, whose final report was published in February 2022.

Links:https://www.fca.org.uk/publications/feedback-statements/fs23-6-artifical-intelligence-machine-learning