On 10 March 2025, the Financial Conduct Authority (FCA) published a letter on supporting artificial intelligence (AI), innovation and growth in financial services, which was written jointly by the FCA and the Information Commissioner’s Office (ICO) and addressed to Trade Association chairs and CEOs.

Background

In the letter, the FCA and ICO explain that they recognise the ongoing importance of providing the financial services sector with regulatory clarity and certainty around the use of AI and other technologies in ways that support responsible innovation and create benefits for the public. They highlight their collaborative work to help industry navigate the requirements of UK financial and data protection regulations, including through regular ICO participation in FCA TechSprints, joint statements on customer communications, and involvement in the Digital Regulation Cooperation Forum (DRCF)’s AI and Digital Hub pilot.

Roundtable

The FCA and ICO highlight a recent FCA and Bank of England survey, which identified data protection and the Consumer Duty as being in the top three regulatory constraints to AI deployment within financial services. They note their concern that these results seem to show a lack of confidence among some firms to develop and adopt AI technology, as well as potential uncertainty around the interactions between the regulatory regimes.

In light of this, to help further develop their understanding of the challenges faced by firms and ensure they are continuing to provide effective advice and guidance, the FCA and ICO plan to host a roundtable with industry leaders in London on 9 May 2025.

Topics for discussion at the roundtable will include:

  • The broad areas of regulatory uncertainty and challenge that industry/firms face in respect of AI adoption and wider innovation.
  • How the ICO and FCA can work together with industry to provide greater regulatory certainty and support growth.
  • The specific areas of data protection and financial regulation in which greater regulatory support is needed in order to enhance the ability to innovate and adopt new technologies.

Stakeholders interested in attending the roundtable are asked to contact the FCA by 21 March 2025.