Financial services firms are increasingly using AI across a range of business areas. AI technologies have the potential to make financial services and markets more efficient, accessible, and tailored to consumer needs. Although the use of AI brings a range of benefits, it also raises novel challenges and poses potential risks - to consumers, the safety and soundness of firms, market integrity, and financial stability. The financial regulators therefore have a particular interest in the safe adoption of AI in UK financial services, including how policy and regulation can best support it. The question currently rattling the cage of the UK financial regulators is whether AI can be managed through clarifications of the existing financial regulatory framework, or whether a new approach is needed.
In this video, Senior Counsel Tim Fosh and PSL Selmin Hakki, from the Slaughter and May Financial Regulation group, consider the challenges associated with the use and regulation of AI in financial services, examining how existing legal requirements and guidance apply, and what might be on the horizon.
Find out more about our Regulating AI series: As AI adoption increases, and governments and regulators across the globe grapple with how best to regulate AI, Slaughter and May have produced a series of ‘Regulating AI’ thought pieces that consider some of the legal issues that arise from developing and using AI solutions. See our Regulating AI hub for more details. The series looks at issues relating to competition, IP, employment, data protection, financial services and ESG.
Text alternative. AI in Financial Services: facing the future