FCA to Address AI Adoption Barriers in UK Banking

The Financial Conduct Authority (FCA) is set to host a roundtable discussion with UK banking leaders in May to address concerns that strict compliance requirements are slowing down AI adoption in financial services.

A recent FCA and Bank of England survey found that banking institutions cite data protection laws and Consumer Duty regulations as two of the top three regulatory obstacles preventing AI deployment. The FCA noted that the findings highlight a lack of confidence among some firms in developing and implementing AI, as well as uncertainty over how regulatory regimes interact with AI technology.

The upcoming roundtable in London will bring together industry leaders to explore ways to balance innovation with compliance and remove barriers to AI adoption. The FCA aims to clarify regulatory expectations while ensuring that AI can be deployed responsibly and effectively within the banking sector.