UK Regulators Warned Over AI Risks in Financial Services
UK regulators face mounting criticism for their reactive approach to artificial intelligence in financial services. The Treasury Select Committee warns that gaps in oversight could expose consumers to serious harm as AI adoption outpaces regulatory frameworks.
Three-quarters of UK financial firms now use AI, with insurers and global banks leading implementation. While AI promises efficiency gains and improved cybersecurity, unaddressed risks threaten both consumer protection and financial stability.
Current UK regulation relies on existing rules like the Consumer Duty and Senior Managers Regime, with no AI-specific legislation. Critics argue this wait-and-see approach fails to address the technology's rapid integration into financial decision-making.
