On 15 October 2025, the Bank of England (BoE) published its approach to innovation in artificial intelligence (AI), distributed ledger technology (DLT) and quantum computing.

The publication outlines the BoE’s approach to creating an environment in the financial services sector that ensures responsible innovation while setting out the work it has done and will do across these technologies.

Overview

The BoE sets out its approach to fostering responsible innovation across AI, DLT and quantum computing recognising the opportunity for these technologies to address economic challenges, enhance UK productivity and GDP growth, while also continuing to ensure its statutory objectives are met.

In particular, the BoE explains that it intends to use a mix of its “hard” infrastructure, which refers to its physical or tangible infrastructure (such as Real-Time Gross Settlement upgrades); “soft” infrastructure, such as rules, regulations and standards; and its convening and coordinating role, to enable this.

AI

The BoE made clear that it considers AI a transformative force in financial services, but that it wants to ensure that firms can make safe and effective use of AI.

The BoE set out certain steps it has taken to enable this, for example that the BoE and FCA jointly launched an AI Consortium in May 2025 to support industry dialogue. Alongside this, the BoE set out that it will continue gathering supervisory and market intelligence, including through an enhanced AI Survey that seeks broader participation across underrepresented sectors. The BoE also explained that further work is underway to assess whether AI-specific regulatory guidance would be beneficial.

DLT

The BoE explained that it is exploring how it can support the use of DLT, for example to support the evolution of wholesale financial markets in line with the UK Government’s digital markets strategy, including examining existing legal and regulatory frameworks.

In addition, the BoE highlighted certain initiatives it has launched in relation to its use of DLT, such as the DLT Innovation Challenge in collaboration with the Bank of International Settlement (BIS) Innovation Hub’s London Centre, designed to understand the implications of incorporating DLT into wholesale central bank settlement.

Quantum computing

The BoE set out that it considers that quantum computing could be a major technological development impacting financial services but that there is uncertainty about how this might arise and that it could pose a range of risks and challenges.

In response, the BoE explained that it is starting work in this area and will also work to deepen its understanding of quantum computing capabilities as it evolves, in particular that it will work with other authorities on this, such as the National Cyber Security Centre, G7, BIS and others.