The Financial Conduct Authority has launched its AI Lab to help firms overcome the challenges they face when implementing these solutions.
In a speech at an FCA Innovation 10th anniversary event, Jessica Rusu, chief data, information and intelligence officer, unveiled the initiative which she said would also support the government’s work on safe and responsible AI development.
“Our AI Lab will play a critical role by providing AI-related insights, discussions, and case studies, helping us deepen our understanding of potential AI risks and opportunities in a collaborative environment, where regulators and industry can engage candidly and openly,” Rusu explained.
The lab will be made up of four components including AI Spotlight, AI Sprint, AI Input Zone and Supercharged Sandbox and testing.
According to Rusu, AI Spotlight will “provide a space for firms and innovators to share real-world examples of how they are leveraging AI, and to share emerging AI solutions that will lead to industry growth.”
It will be hosted on the Innovation Services FCA portal, which will showcase applications of AI across specific themes.
The FCA has said those accepted would take part in a showcase day at the FCA’s London office on January 28 2025, with firms being able to apply to the AI Spotlight from today.
“The AI Policy Sprint will bring together the brightest minds in industry, academia, regulation, technology and consumer representatives, to focus on how we enable the safe adoption of AI in financial services. We will host this inaugural AI Sprint in January 2025,” Rusu explained.
The AI Input Zone was an online feedback platform for stakeholders to have their say on the future of AI in UK financial services.
Rusu added: “We want to hear your views on the most transformative use cases, how our current framework works and how we may need to adapt in the future. The platform will open next month.”
She said the FCA would enhance its digital sandbox infrastructure through “greater computing power, enriched datasets and increased AI testing capabilities".
“We’ve heard directly from firms about the challenges they face, and we’ve adapted our approach to meet those needs.
“The AI Lab is a testament to our commitment to listening and responding to industry, while continuing to push for innovation that creates better outcomes for consumers and markets alike,” Rusu continued.
She said the initiative was a chance for industry to work together with the regulator to shape the future of AI in the sector and to help inform the FCA’s policy approach.
“That next wave of innovation, whether it be fund tokenisation, green finance, AI, quantum, or any other of the exciting innovations on our horizon, will be met with a financial services regulator ready to support the adoption of these innovations to support growth in our economy,” Rusu explained.
She highlighted that the FCA had a “telescope trained” at whatever was coming next in terms of emerging technologies and priority areas, such as financial inclusion or market abuse.
