Artificial intelligence (AI) is all the rage today, with expectations that all sectors of industry will be transformed as software takes over both mundane and complex tasks. While there remains an element of concern as to how AI could develop, perhaps becoming “self-aware,” the reality is that businesses are investing heavily in the technology, and financial services is one sector that is already benefiting enormously from AI.
Today, the UK Financial Conduct Authority (FCA) has announced a partnership with NVIDIA (NASDAQ:NVDA), the firm that creates many of the top AI chips, to launch a Supercharged Sandbox. This entity is expected to provide firms with the opportunity to experiment with AI in a safe and regulated environment.
The FCA trailblazed the concept of sandboxes and launched a Fintech Sandbox years ago as digital finance emerged.
According to a note distributed by the FCA, the Supercharged Sandbox will offer better data, technical expertise, and regulatory support to boost AI experimentation and, consequently, adoption.
Jessica Rusu, the FCA’s chief data, intelligence and information officer, predicts the partnership willl help firmst that want to test AI concepts but do not have the ability to do so.
“We’ll help firms harness AI to benefit our markets and consumers, while supporting economic growth.”
Dr Jochen Papenbrock, EMEA head of financial technology, NVIDIA, says the Supercharged Sandbox will provde a secure environment to test AI services while using NVIDIA’s full stack computing platform.
At the beginning of UK Tech Week, it was reported that NVIDIA founder and CEO Jensen Huang described the UK as being well-positioned to take advantage of AI. He described the UK as “one of the richest AI communities anywhere on the planet”, adding that it has the “best universities, amazing start-ups and incredible thinkers in computer science.” Huang said it was a “goldilocks” moment.
The UK has been relatively supportive of Fintech innovation, and it appears that AI in finance will benefit from a similar approach. What remains to be seen is any type of restrictions that may be placed on the technology.
The FCA is now accepting applications, with approved firms commencing activities in October.