by Stuart Davis, Fiona M. Maclean, Gabriel Lakeman, and Imaan Nazir

From left to right: Stuart Davis, Fiona M. Maclean, Gabriel Lakeman, and Imaan Nazir. (Photos courtesy of Latham & Watkins LLP)

A new publication from the UK’s financial regulator signals to firms that they should take steps to manage risks in the use of AI.

The UK’s Financial Conduct Authority (FCA) has published its latest board minutes highlighting its increasing focus on artificial intelligence (AI), in which it “raised the question of how one could ‘foresee harm’ (under the new Consumer Duty), and also give customers appropriate disclosure, in the context of the operation of AI”. This publication indicates that AI continues to be a key area of attention within the FCA. It also demonstrates that the FCA believes its existing powers and rules already impose substantive requirements on regulated firms considering deploying AI in their services. Continue reading →