Industry News
The statement summarises stakeholder views on the use of AI in financial services and explores how the FCA’s Digital Sandbox and Regulatory Sandbox could support live testing of AI use cases.
Key points from the statement include:
➡️ Broad support for live testing of AI solutions, particularly in areas such as fraud detection, anti-money laundering (AML), and credit risk modelling;
➡️ Recognition that AI systems can pose novel risks, including bias, lack of explainability, and challenges in governance and oversight;
➡️ Calls for greater clarity on how existing regulatory frameworks apply to AI, especially regarding accountability and data protection;
➡️ Suggestions to expand the FCA’s Sandbox services to include more structured support for AI testing, including access to synthetic data and cross-sector collaboration; and
➡️ The FCA’s commitment to exploring how its innovation services can evolve to support safe and responsible AI deployment in financial services.
✅ Firms should review their plans to deploy AI across their FCC framework, ensuring that robust testing, controls, and governance accompany implementation.
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