Artificial intelligence and financial services

Artificial intelligence represents a huge opportunity for financial services firms, including to become more efficient, to deliver better returns and to identify the most suitable and appropriate products for individual customers. At the same time, AI represents an existential risk. Firms that fail to adapt to the new world of AI-enabled financial services and regulators are likely to be quickly left behind. 

The regulatory and supervisory response to AI is still a work in progress and is bound to develop and mature over the coming years. Rules-based regulation may struggle to keep up with technological development, whereas principles-based regulation will require firms to exercise judgement. It is clear, however, that regulators are already requiring firms to demonstrate appropriate governance over, and executive accountability for, all stages of the AI lifecycle - from design to deployment, and into business as usual running.