FCA Seeks Regulatory Clarity to Boost AI Adoption in UK Banking Sector

The UK’s Financial Conduct Authority (FCA) is set to host a roundtable discussion with banking industry leaders to address concerns that stringent compliance requirements may be hindering investment in artificial intelligence (AI) within the financial sector.

According to a recent survey conducted by the FCA and the Bank of England, financial institutions identified data protection regulations and the Consumer Duty as two of the top three regulatory barriers limiting AI adoption. The FCA noted that these findings highlight a lack of confidence among some firms in developing and integrating AI solutions, as well as uncertainty regarding how existing regulatory frameworks apply to AI-driven financial services.

The upcoming roundtable, scheduled to take place in London in May, will explore the challenges financial firms face in balancing AI innovation with compliance requirements. The discussion aims to clarify regulatory expectations and identify solutions to accelerate AI adoption within the UK banking industry while ensuring adherence to necessary safeguards.