Bank of England Deputy Governor Broadbent stated that financial regulatory agencies must establish a policy framework to manage the risks brought by artificial intelligence (AI) and ensure financial stability. Broadbent pointed out that the rapid development and application of generative AI may have an impact on the financial system. Therefore, the Bank of England has launched an AI alliance, inviting private sector and AI experts to participate, in order to gain a deeper understanding of the benefits and potential risks of AI.
According to a five-year investigation by the Bank of England and the Financial Conduct Authority (FCA) in the UK, the use of AI in financial services is growing rapidly. Among the nearly 120 companies surveyed, 75% have adopted some form of AI, higher than the 53% in 2022. The Bank of England will work with the FCA, government, and international partners to promote the safe application of AI.
The Bank of England's Financial Policy Committee (FPC) is focusing on the macro-prudential risks brought by artificial intelligence, especially its potential impact on financial stability. The FPC plans to release a detailed assessment report on the impact of AI on financial stability in early next year to help formulate appropriate regulatory policies to ensure the safe application of AI in the financial system.