The use of data analytics and artificial intelligence (AI) is increasing in UK financial markets. We want to make sure that consumers and markets benefit from the innovation that these technological changes bring.
Data analytics and AI are increasingly used in financial markets. This technology includes machine learning, AI and other advanced analytical methods, models and systems. It can be deployed for a range of use cases – from robotic process automation and natural language processing to computer vision and deep learning.
We want consumers to benefit from digital innovation, and competition. This includes data-based and algorithmic innovation.
Consumers need to have the confidence that they are getting fair access, price and quality, and that firms act in their best interest. Where decisions are taken by financial services firms using data-based or algorithmic methods, we need to make sure those decisions are safe and responsible, and that the data is used ethically. We also need to understand the impact firms’ decisions can have on different consumer groups, including consumers with vulnerable characteristics.
The opportunities for innovation also apply to the way we regulate and engage externally, and we will continue work in this area to understand how these advances in technology may be used for our regulatory purposes.
DP22/4: Artificial Intelligence
The FCA, Bank of England and Prudential Regulation Authority have a close interest in the safe and responsible adoption of AI in financial services. Through our joint discussion paper, we want to share and gain feedback on our thinking on the potential benefits and risks related to the use of AI in financial services, how the current regulatory framework applies to AI, whether additional clarification of existing regulation may be helpful and how policy can best support further safe and responsible AI adoption.
Research Note: Machine learning in UK financial services 2022
The FCA and the Bank have produced a joint report which presents the findings and analysis of the 2022 machine learning (ML) in UK financial services survey.
AIPFF final report
Read the minutes of the second meeting, which took place on 26 February 2021.
Read the minutes of the third meeting, which took place on 15 June 2021.
Read the minutes of the fourth meeting, which took place on 1 October 2021.
For further information on the Artificial Intelligence Public-Private Forum, please contact us.