Treasury Committee launches AI in banking inquiry

It comes as new figures from the Bank of England highlight how 75% of firms are using AI, with a further 10% planning to use it over the next three years. The inquiry seeks to understand how financial services can utilise AI while protecting consumers against potential risks.  

This could include exploring how City firms are using AI currently, as well as what opportunities it brings for innovation in the financial services sector. They may also consider the potential impact on employment in the sector and ask how the UK compares to other countries in terms of both its competitiveness and approach.  

Additionally, it could review the extent to which AI could jeopardise financial stability, and question if there’s the potential for increased cyber security risks. MPs also want to understand what safeguards may be needed to protect financial consumers, particularly vulnerable ones who may be at risk of bias.  

The Treasury Committee’s chair, Dame Meg Hillier, said: “Successive governments have made clear their intention to embed and expand the use of AI to modernise the economy.    

“My committee wants to understand what that will look like for the financial services sector and how the City might change in the coming years as that transformation gathers pace.

“It’s critically important the City can capitalise on innovations in AI and continue to be a world leader in finance. We must, though, also be mindful of ensuring there are adequate safeguards in place to mitigate the associated risks, particularly for customers. This piece of work will allow us to see the full picture.”

To submit evidence for the inquiry, click here.

How AI is being used in financial services is just one of a number of topics discussed at this year’s Credit Week, to find out more and book you’re tickets click here.