International Regulatory Strategy Group
Published 10 Feb 2023
The IRSG welcomes the in-depth work that has gone into the Joint Bank of England (BoE) and Financial Conduct Authority (FCA) Discussion Paper on Artificial Intelligence and Machine Learning (DP5/22). DP5/22 is an important publication to help advance the policy debate on the use of AI in financial services and how policy and regulation can best support this.
AI and ML are tools increasingly used in financial services and, as noted in the Discussion Paper, may enable financial services firms to offer better products and services to consumers, improve operational efficiency, increase revenue and drive innovation, leading to better outcomes for consumers, firms, financial markets and the wider economy.
The IRSG Discussion Paper response identifies a number of recommendations to help advance the policy debate on this topic. AI comes with a number of risks, including to consumers, market integrity and financial stability, and it is therefore vital that it is managed within an appropriate regulatory structure, in order to provide appropriate protections to individuals and markets whilst also ensuring the regulatory approach is sufficiently flexible and easily implementable for organisations.