Supervisory Authorities publish discussion paper on artificial intelligence

The UK financial services regulators, the Bank of England (BoE), the Prudential Regulation Authority (PRA), and the Financial Conduct Authority (FCA) – together Supervisory Authorities – jointly published a discussion paper (DP5/22) on artificial intelligence (AI) and machine learning on 11 October 2022. The purpose of the discussion paper was to facilitate a public debate on the safe and responsible adoption of AI in UK financial services. The Supervisory Authorities have also raised discussion questions for stakeholder input, with the aim of understanding whether the current regulatory framework is sufficient to address the potential risks and harms associated with AI and how any additional intervention may support the safe and responsible adoption of AI in UK financial services. The discussion paper provides a platform for the Supervisory Authorities, experts and stakeholders to collaborate and jointly assess whether the current legal framework can adequately regulate AI technology by safeguarding each of the Supervisory Authorities' objectives while at the same time promoting innovation in UK financial services. This consultation occurs in parallel to the UK government's ongoing work in developing its own cross-sector approach to the regulation of AI technology and will therefore provide a valuable contribution to this broader policy debate.