UK Central Bank Calls For AI Risk Management Framework

According to PANews, the Deputy Governor of the Bank of England, Briden, emphasized the need for financial regulators to establish a policy framework to manage the risks posed by artificial intelligence (AI) and ensure financial stability. Briden highlighted the rapid development and application of generative AI, which could impact the financial system. In response, the Bank of England has launched an AI alliance, inviting private sector and AI experts to participate, aiming to gain a deeper understanding of AI's benefits and potential risks. A five-year survey conducted by the Bank of England and the Financial Conduct Authority (FCA) revealed a significant increase in AI adoption within financial services. Among nearly 120 surveyed firms, 75% have implemented some form of AI, up from 53% in 2022. The Bank of England plans to collaborate with the FCA, government, and international partners to promote the safe application of AI. The Bank of England's Financial Policy Committee (FPC) is closely monitoring the macroprudential risks associated with AI, particularly its potential impact on financial stability. The FPC intends to release a detailed assessment report on AI's impact on financial stability early next year, which will aid in developing appropriate regulatory policies to ensure the safe use of AI in the financial system.