The UK Treasury Committee has opened a call for evidence into the potential impacts of the increased use of artificial intelligence in banking, pensions and other financial services.
Figures recently published from the Bank of England show that 75% of firms are already using AI, with a further 10% planning to use it over the next three years. However, the launch of ‘DeepSeek’ reminded observers of the volatility and rapidly evolving nature of the AI market.
The Treasury Committee inquiry will explore how AI is currently used by City firms as well as what opportunities it brings for innovation in the financial services sector. MPs may also consider the potential impact on employment in the sector and ask how the UK compares to other countries in both its competitiveness and approach.
The Committee is expected to review the extent to which AI could jeopardise financial stability and question if there is the potential for increased cyber security risks.
MPs also want to understand what safeguards may be needed to protect financial consumers, particularly vulnerable ones who may be at risk of bias.
Chair of the Committee, Dame Meg Hillier, says: “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 deadline for submissions is Monday 17 March