15th Report – Artificial intelligence in financial services

Summary written by Accountability Index from the government's response. It is not the government's own words.

HM Treasury shares the Committee's view that the safe adoption of AI offers significant opportunities and that the associated risks need to be managed effectively, while the Bank of England and the FCA each say they do not take a 'wait and see' approach.

• On Critical Third Parties, HM Treasury says it is gathering evidence and "I expect to make initial designation decisions this year". It does not intend to release further information until designations have been made, and will write to the Committee when they are.
• The Bank of England says it "do[es] not agree" with the 'wait and see' characterisation, and says it "will continue to monitor AI adoption closely and will not hesitate to act when justified".
• On AI-specific stress testing, the Bank agrees that stress testing and scenario analysis are valuable tools. It says it is undertaking scenario analysis and working to incorporate AI scenarios into cyber and operational testing.
• The FCA says it will share additional examples of good and poor practice, and will publish an AI Live Testing evaluation report "towards the end of this year or early 2027". It describes its approach as principles-based and outcomes-focused.

Read the government's response ↗ Report an error