vThe Financial Conduct Authority (FCA) is the regulator for over 50,000 financial services firms and markets in the UK. It is responsible for promoting competition between financial service providers while also protecting customers’ interests.

While it is already a highly regulated sector, the increasing adoption of artificial intelligence and machine learning within the financial services industry can pose unique challenges that may be unaccounted for by existing regulatory frameworks. Indeed, the Bank of England estimates that 72% of financial services firms in the UK use or develop machine learning applications, with the median number of machine learning applications predicted to increase 3.5 times over the next few years. This proliferation has highlighted the pressing need to ensure that the risks of AI are managed.