Commenting on the FCA’s strategic approach to the use of Artificial Intelligence in the UK financial services sector, Karim Haji, global and UK head of financial services at KPMG, said:
“It’s hard to overstate the potential capabilities of AI for a sector as vibrant and diverse as UK financial services. The BoE, PRA and FCA’s AI strategies all leverage existing regulatory parameters for firms, with enough flexibility for different types of providers to develop use cases for the technology that meet their customers’ specific needs.
“Given the rapid pace of innovation and the potential benefits and risks of AI, we’ll only know how successful the approach is after a sustained period of implementation. It will need to be reconsidered if it curtails, rather than promotes innovation and if it doesn’t sufficiently protect consumers from intentional, or unintentional, harm.
“Organisations can take action now, establishing the governance and AI frameworks aligned to the regulatory outcomes and expectations set out in these letters. These foundations set out by the regulators and effective risk management are key, and very much aligns with how we have been helping clients.
“The regulation of AI will continue to be a big issue for the financial services sector this year. A recent poll we conducted found 81% of sector leaders ranked policies aimed at balancing the opportunities with the risks of AI as important when it comes to government policy ahead of a general election.”
