The UK Treasury Committee has initiated a comprehensive inquiry into the rising use of artificial intelligence (AI) in financial services, particularly in banking, pensions, and investment sectors. With 75% of firms already incorporating AI technologies and another 10% planning to adopt them in the next three years, the Committee seeks to evaluate both the opportunities and risks AI presents for the industry.
Key Focus Areas:
The inquiry aims to assess how AI is being implemented by financial institutions, its impact on productivity, and its potential to reshape the workforce within the sector. Beyond economic benefits, the Committee will also examine the risks AI poses, including:
- Cybersecurity threats
- Impacts on financial stability
- Bias in AI-driven decision-making
A crucial aspect of the investigation is understanding how AI could affect consumer protection, especially for vulnerable groups, and how it may influence the UK’s competitiveness in the global financial market.
A Balanced Approach:
Dame Meg Hillier, Chair of the Treasury Committee, emphasized the need for the UK to embrace AI innovation while ensuring proper safeguards. She noted, “It is critically important the City can capitalize on innovations in AI and continue to be a world leader in finance. However, we must be mindful of ensuring adequate safeguards to protect customers.”
Evidence Gathering:
The Committee is calling for evidence from a wide range of stakeholders, including financial institutions, AI experts, consumer advocacy groups, and industry representatives. Submissions will be accepted until Monday, 17 March. The inquiry aims to provide a clear framework to guide future regulation and policy, ensuring that AI’s integration into financial services is both beneficial and secure.
References:
- UK Treasury Committee Inquiry into AI in Financial Services
