Financial services firms rush to AI despite lack of understanding of its functions

BoE and FCA findings

Artificial intelligence adoption by financial services firms is growing rapidly despite high levels of uncertainty about how it works, an industry survey has found.

According to research conducted by the Bank of England and the Financial Conduct Authority on AI in UK financial services, three quarters of firms are already using AI, with scope for a further 10% to implement the technology over the next three years.  This marks a significant uptick in the figures from the 2022 joint BoE and FCA Machine learning in UK financial services survey, where the responses stood at 58% and 14%, respectively.  But despite the rush to implement this technology, almost half (46%) of respondent firms admitted to only having ‘partial understanding' of the AI tech...