TSC: AI in financial services

TSC has published its report, which encourages firms and the FCA to work together to ensure that the UK capitalises on AI’s opportunities.  However, the report also recommends that BoE and FCA conduct AI-specific stress-testing, and that FCA should publish practical guidance on AI for firms by the end of 2026.  TSC also notes its concern that, despite being set up for more than a year, no organisations have yet been designated under the Critical Third Parties regime and urges the Government to designate AI and cloud providers deemed critical to the financial services sector in order to improve oversight and resilience.