Context
The FCA has published an article by Alex Smith, Head of Cross-cutting Policy and Strategy at the FCA, explaining how the FCA is responding to the practical questions that AI technology raises for firms as it changes financial services. Firms are using AI to drive efficiency, support decision-making and deliver better outcomes for consumers and markets. The FCA wants to support that innovation, but it must be safe, responsible and well governed.
Key points to note and next actions
The FCA wants to help industry to tackle new and practical questions that AI is raising, so it is speaking to firms on topics such as:
- How firms oversee and govern AI.
- How they test models and monitor outcomes.
- How they ensure fair treatment for customers, including those with features of vulnerability.
- How they explain AI-driven decisions.
The article discusses collaboration with industry, learning together through the AI Lab, and building a shared understanding. The FCA intends to share good and poor practice later this year to better support firms in adopting AI safely and responsibly and as AI technology develops.