Bank of England Deputy Governor: Financial regulators must establish a policy framework to manage the risks posed by AI and safeguard financial stability

On October 31st, according to a report by Jin Ten, the deputy governor of the Bank of England, Bridon, said that financial regulators must establish a policy framework to manage the risks posed by artificial intelligence (AI) and safeguard financial stability. Bridon pointed out that the rapid development of generative AI and its application may have an impact on the financial system. To this end, the Bank of England has launched an artificial intelligence consortium, inviting the private sector and AI experts to participate, with the aim of gaining a deeper understanding of the benefits and latent risks of AI.
According to a five-year survey by the Bank of England and the UK's Financial Conduct Authority (FCA), the use of AI in financial services is growing rapidly, with 75% of the nearly 120 companies surveyed having adopted some form of AI, up from 53% in 2022. The Bank of England will work with the FCA, governments and international partners to promote the safe application of AI.
The Bank of England's Financial Policy Committee (FPC) is focusing on the macroprudential risks posed by artificial intelligence, particularly its potential impact on financial stability. The FPC plans to publish a detailed assessment of AI's impact on financial stability early next year to help develop appropriate regulatory policies to ensure the safe use of AI in the financial system.