The Treasury Select Committee has launched an inquiry into the potential impacts of the increased use of artificial intelligence (AI) in banking, pensions and other financial services.
Figures recently published by the Bank of England showed that 75% of firms were already using AI, with a further 10% planning to use it over the next three years.
MPs want to understand how financial services can use AI while protecting consumers against potential risks.
What is the scope of the committee’s AI inquiry?
The inquiry could explore how AI is used by city firms, the opportunities it brings for innovation in the financial services sector, its potential impact on employment and how the UK compares to other countries in regarding its competitiveness and approach.
The risks posed to financial stability and the potential for increased cybersecurity threats could also be reviewed.
How the housing landscape is set to shift
Sponsored by Halifax Intermediaries
Dame Meg Hillier, chair of the committee, said: “Successive governments have made clear their intention to embed and expand the use of AI to modernise the economy.
“My committee wants to understand what that will look like for the financial services sector and how the city might change in the coming years as that transformation gathers pace.
“It’s critically important the city can capitalise on innovations in AI and continue to be a world leader in finance. We must, though, also be mindful of ensuring there are adequate safeguards in place to mitigate the associated risks, particularly for customers. This piece of work will allow us to see the full picture.”
The committee is calling for evidence from the finance industry, AI sector, consumers and experts. The deadline for submissions is Monday 17 March.
