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UK lawmakers on the influential Treasury Select Committee have launched a new inquiry into the growing use of artificial intelligence (AI) in banking, pensions and financial services, with a focus on consumer protection and financial stability.
“My committee wants to understand what that will look like for the financial services sector and how the City might change in the coming years as that transformation gathers pace,” said Meg Hillier, chair of the cross-party committee.
The committee, which has recently been scrutinising access to cash, has now opened a call for evidence, seeking input from industry experts, AI specialists and the public.
With 75 percent of firms already using AI, and adoption set to rise, MPs will examine both opportunities and risks, including cybersecurity threats, job losses and potential bias in AI-driven decision-making.
The inquiry will also assess whether current regulations are fit for purpose or need updating to address AI’s rapid evolution, and submissions are open until March 17, 2025.
“It’s critically important that the City can capitalise on innovations in AI and continue to be a world leader in finance,” said Hillier.
However, the backbench Labour MP added that there is a need to “be mindful of ensuring there are adequate safeguards in place to mitigate the associated risks, particularly for customers”.
“This piece of work will allow us to see the full picture.”
Westminster’s work here reflects developments elsewhere, such as the EU, where the European Commission ran a consultation on AI use in financial services last year.
