UK Finance feeds back on use of AI

UK Finance has responded to the Treasury Committee call for evidence on use of AI in financial services.  The response highlights:

• that adoption of AI varies significantly across financial services, but most institutions are in the exploratory phase;
• algorithmic trading and AI-driven trading are different and should not be conflated;
• current important use cases include:
  • fraud detection
  • AML, transaction monitoring and sanctions screening
  • trading
  • credit decisioning
  • marketing and customer support
  • cybersecurity
  • back-office functions
  • payments, clearing and settlement
  • treasury and cash management
  • investment and wealth management
  • customer communications
  • code generation and conversion
  • contact centres
  • risk management
• key regulatory constraints are data protection, resilience, cybersecurity and third party rules as well as the Consumer Duty and FCA conduct rules;
• key other constraints include the speed of technological change, deploying the AI, skills and governance, and customer trust and transparency.