The UK’s financial watchdog is launching an AI Lab to bring together technology companies, academics and regulators to better understand the present and future impact of technology on financial services.
Announced in a speech by Jessica Rusu, Head of Data, Information and Intelligence at the Financial Conduct Authority (FCA), the AI Lab will support the implementation of AI in finance and outline how it can be regulated.
The lab will consist of four elements: AI Spotlight, where developers and businesses share how they use AI; AI Sprint, which will examine how to enable the safe adoption of AI in finance; AI Entry Zone, where stakeholders can share their views on the FCA’s regulatory approach to AI and an expanded AI-focused sandbox for testing new technologies.
“AI will revolutionize financial services,” Rusu said. “And while we are just beginning to see the benefits of AI emerge, we are clear that these benefits are not without risks.”
Rusu said: “Our AI Lab will play a vital role in providing AI-related insights, discussions and case studies, helping us deepen our understanding of the potential risks and opportunities of AI in a collaborative environment. , where regulators and industry can engage frankly and openly. .”
The regulator said actively engaging with developers of new technologies and testing innovative financial products alongside technology companies was a transformative regulatory practice.
She highlighted the success of her regulatory sandbox, TechSprints and PolicySprints, which has supported the rise of UK fintech, currently Britain’s best-funded technology sector.
“Some see us as guardians, others as enforcers. A wall or teachers with red pens,” Rusu said.
“Here, we are not obstacles to progress. We are not a wall, we are a bridge. Partners to help shape and support beneficial innovation.
Most of the FCA AI laboratory’s projects will start in January 2025.
The announcement was made during an event celebrating the 10th FCA anniversary on Thursday.
Learn more: “Not insurable”: AI risks discrimination in insurance, warns FCA boss
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