The Bank of England will conduct an assessment next year regarding the risks associated with AI and machine learning in the financial services sector.
According to Associated Press, this decision forms part of its half-yearly Financial Stability Review. The financial services sector, constituting about 8% of the British economy, is crucial due to its extensive global connections.
The Financial Policy Committee, responsible for identifying and monitoring risks, emphasises the importance of ensuring the resilience of the U.K. financial system against potential threats from widespread AI and machine learning adoption. Bank Governor Andrew Bailey highlighted the necessity of embracing AI with a clear understanding of its capabilities. He acknowledged artificial intelligence profound potential to influence economic growth, productivity, and the broader economic landscape.
Over the past year, the dialogue around artificial intelligence has intensified, with its benefits and threats coming into sharper focus. The growing popularity of AI tools like OpenAI’s ChatGPT has led to a global push for effective AI regulation, including efforts within the European Union to establish world-first AI regulations.
Governor Bailey, admitting his limited expertise in AI, insists that firms utilising AI must have a comprehensive understanding of the technology. He stressed that AI should not be viewed solely as a source of risk but also as a tool with tremendous potential.
“We obviously have to go into AI with our eyes open,” Bank of England Governor Andrew Bailey said. “It is something that I think we have to embrace, it is very important and has potentially profound implications for economic growth, productivity and how economies are shaped going forward.”
“The moral of the story is if you’re a firm using artificial intelligence, you have to understand the tool you are using, that is the critical thing,” Bailey added.
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