AI – the regulatory challenge

Financial services Artificial Intelligencetechnology is developing apace, as regulators juggle the desire to fosterinnovation and competitiveness, alongside the need to protect consumers andmarket integrity. Compliance teams should recruit AI specialists as well asthoroughly understand the complex issues and risks, reports Neasa MacErlean.

Artificial Intelligence (AI) is set to make adramatic entrance into the world of regulation. The Financial Conduct Authorityand the Bank of England are prioritising the issue even in this time ofcoronavirus, and taking a major step forward by the end of the year. TheEuropean Commission, along with regulators around the world, are also urgentlyseeking to balance the needs of consumers, markets and firms before AI distortsthe current equilibrium. The tie-up between Standard Chartered Bank andMicrosoft will set a fast pace for the rest of the market.