On 17 February 2022, the Bank of England and the Financial Conduct Authority published a report on artificial intelligence (AI) in financial services. The publication marks the completion of activities of the AI Public-Private Forum (AIPPF), launched in October 2020. The Forum brought together experts in financial services, technology and academics, as well as observers representing the public sector and representatives of other UK supervisory authorities and UK Government.
The Forum, ran with quarterly meetings and a number of workshops, aimed to exchange information, help regulatory authorities understand the practical challenge associated with the use of AI in financial services, and to gather suggestions for good practice.
The report also explores barriers to adoption, challenges and risks associated with the use of AI in financial services. The document presents various ways to address the current challenges and suggests different approaches to mitigate the risks.
The authors of the report emphasise that the objective of establishing a regulatory framework for the adoption and use of AI is a key element of fostering innovation and should be further analysed and explored. Regulatory authorities should provide more clarity on the existing rules and standards but any new guidelines should not overly intrude into the development of AI, and should include practical examples.
The AIPPF report also recommends that the public-private engagement should continue and suggests that an industry consortium should be established to help face the challenges and create appropriate standards on the use of AI in financial services.
The full report is available here:
https://www.bankofengland.co.uk/-/media/boe/files/fintech/ai-public-private-forum-final-report.pdf?la=en&hash=F432B83794DDF3F580AC5A454F7DFF433D091AA5