The use of AI in financial services is evolving rapidly, with firms leveraging its capabilities across operations to enhance efficiency and customer experiences. 

Generative AI has significantly expanded use cases, prompting regulators to take notice. In the UK, the Financial Conduct Authority (FCA) is actively monitoring AI adoption, launching initiatives such as the AI Input Zone (a development of the FCA’s AI Lab) to understand current and future applications of AI along with the requisite financial services regulatory framework. While the UK lacks a dedicated AI regulatory framework, firms must still ensure compliance with existing regulations, including the FCA’s Principles for Businesses, Consumer Duty, SYSC Requirements, the Equality Act 2010 and GDPR.

In this article we explore: 

• the regulatory landscape for AI;
• AI compliance and governance;
• risk management and mitigation; and 
• cross-border and strategic considerations.

Read the full pdf “Compliance considerations in AI”, first published in www.compliancemonitor.com and www.i-law.com.