Artificial Intelligence

Recent Articles

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    08/02/2024

    UK government publishes delayed update on AI policy

    The UK government has published its delayed response to the consultation accompanying its March 2023 white paper on artificial intelligence (AI). It had been expected by the end of September 2023, but was delayed until after the AI Safety Summit at Bletchley Park in November 2023.The government has not put forward any legislative proposals at this stage and remains committed to a sector-by-sector approach to regulating AI. Instead, the government will continually review whether its approach of issuing non-binding principles to UK regulators remains appropriate, recognising that legislative action...
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    07/11/2023

    Financial services outsourcings and AI

    With the AI summit last week in Bletchley Park where a world-first agreement has been made between the UK, EU, US and China on the opportunities and risks posed by AI, we thought it was a good time to provide our initial thoughts on AI and the potential impact on regulated outsourcing arrangements. As outlined in the Bletchley Declaration, AI presents a significant opportunity for regulated firms to enhance and automate processes and tasks, both internally and externally via third party service providers, alongside some complex challenges and risks.Ultimately, our view is that the challenges are...
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    06/11/2023

    Pathways to progress: Intelligent Design for an AI World

    IntroductionThe UK financial regulators are finally beginning to turn their minds in a serious way towards how they will supervise firms seeking to deploy artificial intelligence (AI) in an increasingly automated industry.  In Discussion Paper 5/22 (DP5/22), the UK regulators split the AI lifecycle into three distinct stages: pre-deployment, deployment and recovery/redress.This briefing focuses on the matters firms should have in mind when in the pre-deployment phase.  It builds on previous statements made by the regulators in relation to the use of AI, machine learning (for example in...
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    27/10/2023

    AI in financial services: industry feedback published and other developments

    On 26 October 2023, the Bank of England (“BoE”), Prudential Regulation Authority (“PRA”) and Financial Conduct Authority (“FCA”) (together, the “Supervisory Authorities”) published a joint Feedback Statement on ‘Artificial Intelligence and Machine Learning’ (FS2/23) (the “Feedback Statement”). The Feedback Statement is a follow-up to the Discussion Paper (DP5/22) on the same topic published in October 2022 (the “BoE/FCA Discussion Paper”).On 26 October 2023, the UK Government also published a Discussion Paper on...
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    09/10/2023

    Pathways to progress: Board Oversight and Accountability in an Artificially Intelligent World

    The unexpected speed with which Artificial Intelligence (AI) has captured the public imagination – both in business and in private lives – has been staggering.  And both the regulators and the regulatory system itself have struggled to keep up with the pace of change.In October 2022, the FCA and the PRA issued DP5/22, which sets out a high level framework for discussion of the evolving regulation of artificially intelligent systems.  While the questions the regulators asked back in 2022 were potentially wide ranging, the tenor of the discussion paper was clearly geared towards...
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    31/08/2023

    AI in financial services – Autumn 2023 update

    Over the course of 2023, artificial intelligence (“AI”) has continued to rise up the regulatory and business agenda. Ahead of several important policy announcements in Autumn/Winter 2023, we have prepared an update on recent regulatory developments in AI and upcoming milestones for the financial services sector.  The update includes a summary of the UK Government AI White Paper consultation, which is due to report back by the end of September, an overview of recent areas of focus for the UK financial services regulators in relation to AI, an update on the current status...
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