On 5 October 2023, the FCA published a speech by Jessica Rusu (FCA Chief Data, Information and Intelligence Officer) entitled Flipping the coin in financial services.
In this speech Ms Rusu warns that if we focus too narrowly on AI alone, we miss the opportunity to connect the dots with the broader issues related to digital infrastructure, a growing reliance on the cloud and other third-party tech providers, as well as the important role that good quality data plays in the adoption of AI and how all this impacts consumer safety. She then explores these four areas in her speech.
Ms Rusu also touches on the Consumer Duty which includes cross-cutting rules pertaining to retail customers, requiring firms to act in good faith, avoid causing foreseeable harm, and enable and support retail customers to pursue their financial objectives. She states that the FCA believes that these frameworks provide it with the tools it needs to work with regulated firms to address material risks associated with AI and provide both a context for the regulation of the technology and create incentives for the right outcomes.