Our Emerging Regulatory Approach To Big Tech And Artificial Intelligence

By: Nikhil Rathi (Financial Conduct Authority)

Highlights

• We welcome the government’s call for the UK to be the global hub of AI regulation and will open our AI sandbox to firms wanting to test the latest innovations.
• Big Tech’s role as the gatekeepers of data in financial services will be under increased scrutiny.
• Our outcomes and principles-based approach to the regulation, including the Senior Managers Regime and Consumer Duty, should mean firms have scope to innovate while protecting consumers and market integrity. We will only intervene with new rules or guidance where necessary.
• We will regulate firms that are designated as Critical Third Parties where they underpin financial services and can impact stability and confidence in our markets.

Introduction: AI solutions for human problems

Depending on who you speak to, AI could either lead to the destruction of civilisation, or the cure for cancer or both.

It could either displace today’s jobs or enable an explosion in future productivity.

The truth probably embraces both scenarios. At the FCA we are determined that, with the right guardrails in place, AI can offer opportunity.

The Prime Minister said he wants to make the UK the home of global AI safety regulation.

We stand ready to make this a reality for financial services, having been a key thought leader on the topic, including most recently hosting 97 global regulators to discuss regulatory use of data and AI…

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