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 transparent, fair and secure, and that the data is used ethically. We also need to understand the impact firms’ decisions can have on different consumer groups, such as the most vulnerable.
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.
Artificial Intelligence Public-Private Forum
The FCA and the Bank of England (BoE) have established a forum with the public and private sectors to better understand the use and impact of AI in UK financial markets. This includes consideration of the potential benefits and constraints to deployment, as well as the potential risks associated with the application of AI. The Forum explores how technological change can support beneficial innovation for consumers and markets.
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.