UK AI final report says governance is ‘crucial’

More than a year after UK regulators pledged to analyze the impact of artificial intelligence (AI), a report details the challenges and recommends the governance of the controversial technological tool.

The report, “Artificial Intelligence Public-Private Forum”, by the Bank of England and the Financial Conduct Authority (FCA) was launched in 2020 to collect views on potential regulations that could be useful in supporting safe adoption of AI.

The 47-page document explores barriers to adoption, how to overcome them, and mitigate potential risks. But the researchers concluded that given the rapid evolution of AI, there are no clear answers yet.

The forum ran for a year. It brought together a diverse group of experts from financial services, technology, academics, the public and other UK regulators.

The result shows that governance is crucial for the safe adoption of AI in financial services. A set of policies and controls would ensure accountability for a company’s use of AI. Effective regulation also ensures effective risk management and solves many data and model issues.

“On the other hand, poor governance can increase challenges and produce risks for consumers, businesses and the financial system,” the report says.

In another initiative launched last month, the UK has set up an AI Standard Hub to increase the development of global AI technical standards.

Read more: UK seeks its place to shape global standards in artificial intelligence

The new standard promises to create tools for companies to develop AI systems and help organizations develop and benefit from global benchmarks.

But the final report acknowledged that implementing proper and effective governance can be difficult to achieve, in part because AI could eliminate human judgment and oversight of key decisions. Other concerns include fighting bias and fairness.

The next step, according to the researchers, is to continue engagement with stakeholders. It would also be useful to have regular meetings on best practices, according to the report.

——————————

NEW PYMNTS DATA: ACCOUNT OPENING AND LOAN SERVICE IN THE DIGITAL ENVIRONMENT

On: Forty-two percent of US consumers are more likely to open accounts with financial institutions that facilitate automatic sharing of their bank details upon sign-up. The PYMNTS study Account opening and loan management in the digital environmentsurveyed 2,300 consumers to explore how FIs can leverage open banking to engage customers and create a better account opening experience.

Comments are closed.