Britain’s financial watchdog is launching an AI lab to bring together tech firms, academics and regulators to better understand the technology’s present and future impact on financial services.
Announced in a speech by Jessica Rusu, chief data, information and intelligence officer at the Financial Conduct Authority (FCA), the AI lab will support the implementation of AI in finance and inform how it can be regulated.
The lab will be made up of four components: AI Spotlight, where developers and companies share how they are using AI; AI Sprint, which will look at how to enable the safe adoption of AI into finance; AI Input Zone, in which stakeholders can share views on the FCA’s AI regulatory approach and an expanded AI-focused sandbox to test new technologies.
“AI will revolutionise financial services,” Rusu said. “And whilst we are just starting to see AI’s benefits emerge, we are clear that those benefits do not come without risks.”
Rusu said: “Our AI Lab will play a critical role by providing AI-related insights, discussions, and case studies, helping us deepen our understanding of potential AI risks and opportunities in a collaborative environment, where regulators and industry can engage candidly and openly.”
The regulator said actively engaging with the developers of new technologies and testing innovative financial products alongside tech firms has been a transformative practice for regulation.
She pointed to the success of its regulatory sandbox, TechSprints and PolicySprints that have supported the rise of the UK fintech, currently the best-funded tech sector in Britain.
“Some see us as gatekeepers, others as enforcers. A wall, or teachers with red pens,” Rusu said.
“Here, we are not barriers to progress. We aren’t a wall, we’re a bridge. Partners in helping shape and support beneficial innovation.”
The bulk of projects from the FCA AI lab will start in January 2025.
The announcement was made at an event celebrating the 10th anniversary of the FCA on Thursday.
Read more: ‘Uninsurable’: AI risks discrimination in insurance warns FCA boss
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