WIREDGOV

The Bank of England and the Financial Conduct Authority published its final Artificial Intelligence Public-Private Forum (AIPPF) report on 17 February 2022 which sought to share information and understand the practical challenges of using AI within financial services, as well as the barriers to deployment and risks.

The AIPPF was launched in October 2020, bringing together experts from financial services, the tech sector and academia, along with public sector observers from other UK regulators and government. The report gathers views on potential areas where principles, guidance or good practice examples could support the safe and secure adoption of these innovative technologies.

The AIPPF identified key challenges associated with AI and financial services as well as a series of solutions and policy recommendations to address them. The development and deployment of artificial intelligence have helped the industry tackle some critical issues including financial crime, cyber security attacks and financial inclusion.

Going from experimentations to mainstream deployment, AI has enabled hyper-personalised services that would have been impossible to tailor at such a granular level. It unlocked the ability to make more powerful decisions quicker in a more standardised and understandable way, providing consumers faster, cheaper and personalised products. AI has also helped financial services boost efficiency and increase security.

Some of the key recommendations from the report include:

• Better clarity from regulators on the existing regulation and policies that apply to AI.
• A regulatory framework focused on the outcomes expected
• Continued engagement between the public and private sectors
• The creation of an industry consortium to help address challenges and create standards.

The report highlighted some interesting key points about the potential for the deployment of artificial intelligence in the financial services sector and the need for continuous engagement between industry and regulators. The focus on expected outcomes is also a good initiative to support innovation, whilst guaranteeing the safe implementation of AI. To support innovation, regulators could provide illustrative case studies and identify high-risk use-cases to focus on.

We look forward to engaging with the financial services sector and regulators to unlock the potential of artificial intelligence for all.