UK regulators need stronger government support to deal with the rapidly increasing use of AI in the financial sector and limit risk of “system-wide harms,” according to a “first of its kind” report released Monday.
The UK Financial Conduct Authority’s (FCA) Mills Review into AI and retail financial services said the organisation should build its own AI tools and seek new powers to help address “gaps in regulatory frameworks.”
FCA Executive Director and report writer Sheldon Mills said: “AI concentrates some risks at system level through shared models, infrastructure and cross-border dependencies … raising questions about how regulators monitor and understand shared dependencies across the financial services ecosystem.”
