On 5 November 2024, the Financial Conduct Authority (FCA) opened its AI Input Zone, through which it is inviting stakeholders to provide their views on current and future uses of artificial intelligence (AI) in UK financial services, as well as the financial services regulatory framework.
As one component of the FCA’s AI Lab, launched in October 2024, the AI Input Zone is intended to help the FCA to support safe and responsible innovation, promote growth and competitiveness of the sector, and gain a practical understanding of AI usage in financial services. The FCA is seeking a wide range of views from different market participants to understand what transformative use cases may develop, and what it can do to support opportunities for beneficial innovation.
The AI Input Zone is part of wider evidence gathering aimed at helping shape the FCA’s future regulatory approach. Stakeholders are reminded that they can apply to participate in other elements of the AI Lab that may be of interest, such as the AI Sprint.
The questions on which the FCA is inviting views within the AI Input Zone relate to:
- What AI use cases stakeholders are considering or exploring in their firm or organisation, and what transformative AI use cases look like in the next 5-10 years.
- Whether there are any barriers to adopting these use cases currently or in the future.
- Whether current financial services regulation is sufficient to support firms to embrace the benefits of AI in a safe and responsible way, or whether it needs to evolve.
- What specific changes or additions to the current regulatory regime, or areas of further clarification or guidance, are needed.
Next steps
Responses to the questions set out in the AI Input Zone are requested by 31 January 2025.