According to PANews, Bank of England Deputy Governor Briden has highlighted the need for financial regulators to establish a policy framework to manage the risks posed by artificial intelligence (AI) and ensure financial stability. Briden highlighted the rapid development and application of generative AI, which could impact the financial system. In response, the Bank of England launched an AI Alliance, inviting the private sector and AI experts to participate, with the aim of gaining a deeper understanding of the benefits and potential risks of AI.
A five-year survey conducted by the Bank of England and the Financial Conduct Authority (FCA) has revealed a significant increase in the adoption of AI in financial services. Among almost 120 companies surveyed, 75% have implemented some form of AI, up from 53% in 2022. The Bank of England plans to work with the FCA, government and international partners to promote the safe application of AI .
The Bank of England’s Financial Policy Committee (FPC) is closely monitoring the macroprudential risks associated with AI, in particular its potential impact on financial stability. The FPC intends to publish a detailed assessment report on the impact of AI on financial stability early next year, which will help develop appropriate regulatory policies to ensure the safe use of AI in the financial system.
