BoE Governor Advocates AI Adoption for Financial Regulation

Bank of England Governor Andrew Bailey has called for financial regulators to integrate artificial intelligence into their supervisory frameworks. Speaking at the London School of Economics, Bailey warned that manual data analysis risks missing critical systemic risks buried in the millions of data points collected annually.

"We’ve all got to invest heavily in data and data science," Bailey emphasized, noting that no regulator can claim optimal use of existing data. The BoE and FCA currently process vast datasets from banks and insurers using traditional methods, potentially overlooking actionable insights.

The governor highlighted the paradox of regulatory data—authorities often possess smoking-gun evidence without the tools to identify it. His remarks underscore a sector-wide challenge as financial systems generate increasingly complex data streams.