The pursuit of artificial intelligence (AI) and use of machine learning (ML) are increasingly important fields of innovation in the financial services sector.
In response to this, the Financial Conduct Authority (FCA) and the Bank of England (BoE) have committed to undertake work to better understand how these developments are driving change in financial markets, including business models, products, services and consumer engagement.
In October 2019, the FCA and the BoE published a report on the application of AI/ML in UK financial services. This report constituted a first step towards better understanding the impact of ML on UK financial services.
Building on this, the FCA and the BoE are establishing a forum to further constructive dialogue with the public and private sectors to better understand the use and impact of AI/ML, including the potential benefits and constraints to deployment, as well as the associated risks.
The Artificial Intelligence Public-Private Forum will explore means to support safe adoption of these technologies within financial services, and whether principles, guidance, regulation and/or industry good practice could support this adoption.
More specifically the Forum seeks to:
- Share information and understand the practical challenges of using AI and ML within financial services, as well as the barriers to deployment and potential risks.
- Gather views on potential areas where principles, guidance or good practice examples could be useful in supporting safe adoption of these technologies.
- Consider whether ongoing industry input could be useful and what form this could take.
Participation in the Forum is at the invitation of the FCA and BoE, and includes firms active in the development of artificial intelligence (and use of machine learning), alongside public authorities and academics. The selection process is set out in the terms of reference.
Artificial Intelligence Public-Private Forum (AIPPF)
The FCA and the Bank of England (BoE) established a forum with the public and private sectors to better understand the use and impact of AI in UK financial markets. This included consideration of the potential benefits and constraints to deployment, as well as the potential risks associated with the application of AI. The Forum explored how technological change can support beneficial innovation for consumers and markets.
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.