Government, Bank of England and FCA criticised for taking ‘wait-and-see’ approach to AI use in financial sector
Consumers and the UK financial system are being exposed to “serious harm” by the failure of government and the Bank of England to get a grip on the risks posed by artificial intelligence, an influential parliamentary committee has warned.
In a new report, MPs on the Treasury committee criticise ministers and City regulators, including the Financial Conduct Authority (FCA), for taking a “wait-and-see” approach to AI use across the financial sector.
That is despite looming concerns over how the burgeoning technology could disadvantage already vulnerable consumers, or even trigger a financial crisis, if AI-led firms end up making similar financial decisions in response to economic shocks.
More than 75% of City firms now use AI, with insurers and international banks among the biggest adopters. It is being used to automate administrative tasks or even help with core operations, including processing insurance claims and assessing customers’ credit-worthiness.
