Item 2: Potential topics for workshops and outputs of the AI Consortium

During breakout sessions, members discussed AI topics of interest, associated risks and opportunities, and explored ways in which members could collaborate to produce useful outputs. Suggestions to collaborate included sharing tangible AI use cases and sharing knowledge through examples of good and bad practice to facilitate successful AI adoption. Members also discussed producing resources for non-technical practitioners to understand AI’s capabilities and producing reports on how to manage the risks and opportunities identified by the AIC.

Challenges and risks

Members discussed a range of challenges and risks that the AIC could explore. Key concerns included the growing reliance on third-party providers, raising issues around concentration and accountability. They also noted that widespread use of similar AI models could amplify systemic vulnerabilities, particularly under market stress. Risks of contagion were highlighted, where flaws in one model might spread through the system to another model. There was also unease about generative AI introducing misleading information into financial markets, potentially distorting market signals and movements. Concerns around fairness, such as biased credit scoring, and the increasing threat of AI-driven fraud and cyberattacks were also raised.

Potential strategies and mitigations

To address risks posed by AI, members highlighted several potential strategies and mitigations. These included identifying good practices for managing model-related risks, alongside approaches for monitoring AI usage, risks, and benefits – one member suggested exploring whether formats such as regulatory reporting could support supervisory oversight. Governance was another key theme, with some pointing to the role of international standards in supporting the safe adoption of AI. Some members highlighted the varying levels of technical expertise across the sector and thought education and awareness particularly for consumers and smaller firms were essential. Finally, members noted tangible benefits of AI in financial services, such as fraud detection, scaling personalised services, and generating synthetic market data to support model development.

Benefits and opportunities

Members shared insights on the benefits and opportunities likely to dominate in the coming year. These included improving operational efficiency, enhancing customer experience, and driving organisational transformation through task automation. They also noted the potential for more advanced applications, such as agentic AI, to emerge, alongside the increased use of AI in fraud prevention.

Summary of discussions

Sarah Pritchard asked the AIC members whether there was anything the Bank and FCA should uniquely focus on. Members noted both regulators have taken a pragmatic yet flexible approach to regulation so far. Multiple members highlighted the need to coordinate across other regulators, jurisdictions and sectors, noting it was useful to have other UK regulators in attendance at the AIC as observers. One member suggested introducing AI at an earlier stage of curriculums in education.

Item 3: Next steps

The Co-Chairs and members agreed the next meeting would be held virtually in July and would focus on preparation for the AIC workshops, including by determining workshop topics and outputs. Members agreed under the AIC’s Terms of Reference to form small working groups to conduct in-depth and/or technical examinations of specific subjects and report back to the AIC. The subsequent AIC meeting was proposed for September.

The Co-Chairs thanked the members for their participation.

Attendees

Co-chairs & Moderators

Breeden, Sarah – Bank of England

Pritchard, Sarah – Financial Conduct Authority

Members

Ahmed, Ratul – Commerzbank AG 

Beliossi, Giovanni – Axyon AI SRL 

Bhatti, Tanveer – Revolut

Buchanan, Bonnie Gai – University of Surrey 

Daley, Sue – techUK 

Dunmur, Alan – Allica Bank 

Hughes, Clara – Pension Insurance Corp 

Jefferson, Michael – Amazon Web Services 

Jones, Matthew – Nationwide  

Kazantsev, Gary – Bloomberg LP 

Kazim, Emre – Holistic AI 

Li, Feng – Bayes Business School 

Magazzeni, Daniele – JPMorgan 

Pearce, Christopher – esure Group 

Pearce, Luke – Santander 

Prince, Emily – LSEG

Rees, Harriet – Starling Bank Limited 

Rosenshine, Kate – Microsoft 

Szpruch, Lukasz – The Alan Turing Institute 

Valane, Jeffrey – HSBC 

Wade, David – Goldman Sachs 

Wintle, Anna – Visa 

Xu, Justin – Millennium Global Investments 

Observers

Croxson, Karen – CMA

Fairburn, James – HMT

Seiler, Chia – Ofcom

Apologies

Dhawan, Rohit – Lloyds Banking Group

Mullins, Inga – Fluency

Patel, Parimal – Schroders