Adoption of AI in financial services accelerates

Predictive artificial intelligence is already in widespread usage in the sector, but there is growing focus on the use cases for generative models and how they might be safely integrated into business processes. Lucy Hadrill and Katie Simmonds discuss a new report and consider the future for AI in financial services, along with risk areas for customer outcomes, legal and regulatory requirements.

Lucy Hadrill(solicitor) andEmma Radmore(legal director) are members of Womble Bond Dickinson's Financial Services team in London. Katie Simmonds (managing associate) is a data and technology lawyer, specialising in data privacy, cybersecurity, digital regulation and technology transactions. Contact them onlucy.hadrill@wbd-uk.com,emma.radmore@wbd-uk.com and katie.simmonds@wbd-uk.com.

The use of artificial intelligence (AI) is not new for the United Kingdom's financial services firms. It is already modernising the banking, insurance and payments sectors, which use it to enhance customer service, personalise insurance cover and detect suspicious payment transactions. The regulators themselves are also hopping on the bandwagon - the UK's Financial Conduct Authority announced last year that it is using AI-based models to help tackle fraud. But, despite some tangible benefits, the financial services industry is still exercising caution when it comes to AI.