Government outlines short- and long-term measures to guide AI adoption in finance while addressing regulatory and consumer protection concerns.
The UK government has released a policy agenda to accelerate artificial intelligence adoption in financial services, emphasizing regulatory clarity and risk mitigation. The plan incorporates existing initiatives like the Financial Conduct Authority’s AI Lab and Supercharged Sandbox, alongside new proposals for coordinated oversight among authorities.
Key measures include a review of large language models providing financial guidance, assessing consumer outcomes and competition risks. The paper also suggests voluntary disclosures to help consumers differentiate between regulated and unregulated AI services. Longer-term actions focus on resilience and clearer guidance for firms.
The framework aims to align regulatory expectations while fostering innovation, with findings feeding into broader Treasury-led discussions on consumer protections.