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

According to a report by Golden Jubilee, Deputy Governor of the Bank of England, Britten, stated that financial regulators must establish policy frameworks to manage the risks posed by artificial intelligence (AI) and ensure financial stability. Briden pointed out that the rapid development and application of generative AI may have an impact on the financial system. To this end, the Bank of England has launched an artificial intelligence alliance, inviting the private sector and AI experts to participate, with the aim of gaining a deeper understanding of the benefits and potential risks of AI. According to a five-year survey conducted by the Bank of England and the Financial Conduct Authority (FCA), the application of AI in financial services is growing rapidly, with 75% of nearly 120 surveyed companies adopting some form of AI, up from 53% in 2022. The Bank of England will collaborate with the FCA, government, and international partners to promote the secure application of AI. The Financial Policy Committee (FPC) of the Bank of England is focusing on the macro prudential risks posed by artificial intelligence, particularly its potential impact on financial stability. FPC plans to release a detailed assessment report on the impact of AI on financial stability early next year to help formulate appropriate regulatory policies and ensure the safe application of AI in the financial system.