UK Regulators Shun New Rules for AI
UK financial regulators are adopting a wait-and-see approach to artificial intelligence (AI), preferring to use existing rules rather than creating new ones. According to Bank of England Governor Andrew Bailey, regulation is not the right place to start when it comes to AI.
In an accompanying piece for the Bank's latest warning on financial risks, Bailey emphasized that understanding and testing must come first before establishing credible points of intervention. He noted that while AI testing cannot eliminate failures, models will continue to behave unexpectedly.
Jon Relleen, director of infrastructure & exchanges at the Financial Conduct Authority (FCA), stated that existing regulatory frameworks are sufficient for now, but that the approach may need to evolve as the technology advances.