Guernsey Financial Services Commission publishes policy statement encouraging firms’ AI adoption without introducing AI-specific rules

The Guernsey Financial Services Commission has issued a policy statement on the use of artificial intelligence (AI), setting out an explicitly supportive stance and confirming that firms can implement AI within the Bailiwick’s principles-based regulatory regime without seeking specific approval or prior discussion with the Commission. Firms are expected to approach AI adoption as they would any other technical or strategic project, applying the Finance Sector Code of Corporate Governance (notably accountability and risk management) and the Minimum Criteria for Licensing under the relevant regulatory laws. The statement also notes that AI use must comply with existing laws, rules and codes, including requirements in the Commission’s Handbook on Countering Financial Crime relating to the use of technology. While the Commission is not proposing AI-specific rules or guidance and is not prescribing accreditation or certification standards, it points firms with implementation uncertainty to existing frameworks such as the NIST AI Risk Management Framework, ISO/IEC 42001 and the National Cyber Security Centre guidelines. Where firms believe specific rules hinder technology trials, the Commission invites discussion of potential options, including use of the Innovation Sandbox, pilot variations or waivers, or redrafting rules that have become outdated due to technological change.