The UK Financial Services and Treasury Bureau (FSTB) has issued policies for the financial services industry focusing on efficiency, security, and customer service improvements to ensure the responsible use of artificial intelligence.
On Oct. 28, the FSTB — the UK government agency dedicated to building and enforcing policies on finance and treasury — revealed its policy stance on AI adoption in finance.
The FSTB said that the UK’s financial services industry is most receptive to deploying AI into their businesses. The UK regulator recommended a “dual-track approach” for its financial services industry to foster AI development while addressing potential challenges.
Calls for a regulatory team effort
The government intends to collaborate with financial regulators and service providers to facilitate responsible AI adoption. The report explained:
“After all, it (AI adoption) is a balancing act – capturing opportunities and mitigating risks.”
The FSTB’s policy statement highlighted six opportunities from next-gen AI applications, which include research and data analysis, building investment strategies, enhanced customer service, automated risk assessment, crime detection and prevention, and workflow automation.
Current use of AI in the UK includes banking, securities, insurance, accounting, pension fund management, and green initiatives.
The UK will create a supervisory framework to mitigate various risks accompanied by AI adoption, which include job displacement, intellectual property rights protection, and protection for all stakeholders.
UK SFC to soon clarify AI-related obligations
Additionally, the Securities and Futures Commission (SFC) of the UK will issue a circular in November detailing the rules, regulations, and risks associated with AI adoption.
In September, the UK SFC sought the opinions of stakeholders on introducing a new licensing regime for cryptocurrency over-the-counter (OTC) services.
According to a South China Morning Post report, the SFC and the Customs and Excise Department (C&ED) will supervise the companies offering crypto OTC trading, a service that allows UK users to buy and sell cryptocurrencies privately.
The planned regulations and licensing for crypto OTC services in the UK were initially to be handled exclusively by the C&ED under a proposal made public in February.
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