The UK Parliament’s Treasury Committee has opened a call for evidence for a new inquiry into the potential impacts of increased use of artificial intelligence in banking, pensions and other financial services, focusing on how firms can deploy AI while protecting consumers and managing systemic risks. The Committee pointed to Bank of England figures indicating that 75% of firms are already using AI and a further 10% plan to do so over the next three years, and noted that the launch of ‘Deep Seek’ has highlighted the market’s volatility and rapid evolution. The inquiry will examine how AI is being used across different parts of financial services and how adoption may develop over the next decade, including whether fintechs are adopting faster and what share of trading is driven by algorithms or AI. It will also consider productivity gains, practical use cases and barriers to adoption, potential job losses, and how the UK compares internationally. On risk, MPs will explore potential threats to financial stability and cybersecurity, including third-party dependencies, model complexity and embedded or ‘hidden’ models, as well as generative AI hallucinations, herding behaviour and concentration risks where tools are controlled by a small number of large technology providers. Consumer-related questions include benefits and risks for vulnerable customers, embedded bias, data sharing needs, potential legislative change, data protection issues and safeguards for customer data. Evidence is invited from industry, the AI sector, consumers and experts, with submissions due by Monday 17 March.
UK Parliament 2025-02-03
UK Parliament Treasury Committee launches inquiry and call for evidence on AI in financial services
The UK Parliament’s Treasury Committee has launched an inquiry into artificial intelligence impacts in financial services, focusing on consumer protection and systemic risk management. It will assess AI adoption across banking, pensions, and fintechs, examining productivity, job impacts, and international comparisons. It will also explore financial stability threats, cybersecurity, and consumer-related issues like data protection and bias.