The Chief Executive of the UK Financial Conduct Authority (FCA), Nikhil Rathi, addressed in a speech the emergence of Artificial Intelligence (AI) and the role of Big Tech in financial services. The speech was delivered today at the Economist Impact Finance Transformed event.
Rathi said that under the right oversight, AI can drive an “explosion in future productivity.”
The UK wants to be a hub for AI innovation which will require new regulations and oversight. Rathi says they are ready to make AI safety in financial services a reality. Rathi stated:
“As a data-led regulator, we are training our staff to make sure they can maximise the benefits from AI.
We have invested in our tech horizon scanning and synthetic data capabilities, and this summer have established our Digital Sandbox to be the first of its kind used by any global regulator, using real transaction, social media, and other synthetic data to support Fintech and other innovations to develop safely.
Internally, the FCA has developed its supervision technology. We are using AI methods for firm segmentation, the monitoring of portfolios and to identify risky behaviours.”
In regard to Big Tech and financial services data, the FCA is expected to apply greater scrutiny on this activity. Rathi said that while Big Tech can offer opportunities, there is also additional risk and they will be asking for further input on Big Tech being gatekeepers when it comes to data.
As a global Fintech hub, the UK wants to “support inward investment with pro-innovation regulation and transparent engagement,” said Rathi.
