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.
October 2020 update
On 12 October 2020, the Forum held its first meeting. Alongside other Forum members, the FCA’s Interim Executive Director of Strategy and Competition, Sheldon Mills spoke about the Forum and that it forms part of the FCA’s business priority ‘fair value in the digital age’. Understanding technological change and the way it changes markets and outcomes for consumers is a core aspect of the FCA’s work in this area.
Going forward, we will publish summary minutes after each meeting of the Forum.