UK regulations have recently published a report detailing the challenges concerning the governance of controversial artificial intelligence (AI) tools.
Indeed, the Bank of England, alongside the Financial Conduct Authority (FCA), is aiming to analyse the impact of AI and its governance in order to support the safe adoption of the tech within financial services. The report explores the challenges to the implementation, how to address them, and mitigate potential risks.
A set of policies and controls are then deemed necessary in order to ensure accountability for a firm’s use of AI, as well as, efficient regulation to guarantee effective risk management and address data and model-related issues. It is also essential to continue engagement with stakeholders and have meetings on best practices.
It was however found out that due to AI’s rapid evolution, there are no clear answers yet regarding safe governance and adoption of AI in financial services. Implementing appropriate and effective governance is difficult to achieve due to bias.
Another initiative launched in the UK lately is the AI Standard Hub that aims to increase the development of global AI technical standards.