Financial services – defining AI for future regulation

Firms can expect to hear soon, in a white paper to be published by the Office for AI, whether general AI-specific regulation will be introduced in the UK. EU law makers are currently scrutinising separate plans for a draft new EU AI Act. Both developments are expected to focus on issues such as transparency, explainability and governance. However, any new rules would only apply to technology that fits within the definition of AI in new legislation or regulation. Figuring out whether the technology firms use will be in-scope is therefore an important preliminary task for financial services businesses.