Context
John Edwards (the Information Commissioner), and Nikhil Rathi (Chief Executive, FCA) have sent a joint letter to Trade Association Chairs / CEOs in relation to “ Supporting AI, innovation, and growth in financial services”. The letter sets out that the FCA and ICO recognise the ongoing importance of providing the sector with regulatory clarity and certainty around the use of AI and other technologies in ways that support responsible innovation and create benefits for the public.
Key points to note and next actions
- The two Regulators noted with interest that respondents to a recent FCA and Bank of England survey identified data protection and the Consumer Duty to be in the top three regulatory constraints to AI deployment within financial services.
- These survey results appear to demonstrate a lack of confidence amongst some firms to develop and adopt AI technology, as well as potential uncertainty around the interactions between our regulatory regimes.
- The Regulators will be hosting a roundtable with industry leaders in London on 9 May, where they will invite attendees to discuss:
- The broad areas of regulatory uncertainty and challenge which trade bodies face in respect of AI adoption and wider innovation.
- How the ICO and FCA can work together with industry to provide greater regulatory certainty and support growth.
- The specific areas of data protection and financial regulation in which businesses need greater regulatory support to enhance the ability to innovate and adopt new technologies.