UK FCA, PRA, and BoE publish discussion paper (DP5/22) on AI and machine learning

In the discussion paper, the UK financial supervisory authorities have not provided a new legal framework or their intended future approaches for regulating the use of AI and machine learning in financial services. However, they have assessed the benefits, risks and harms related to the use of AI, and the current legal framework that applies to AI in financial services. 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.