[INSIGHTS]: FS2/23 – Artificial Intelligence and Machine Learning

ABOUT: The Bank of England and Financial Conduct Authority reveal insights and feedback on the adoption of AI in financial services.
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Summary
The Bank of England, in collaboration with the Financial Conduct Authority, has released a comprehensive feedback statement, FS2/23, following their initial discussion paper on Artificial Intelligence (AI) and Machine Learning (ML). This document, a culmination of extensive industry engagement, reflects a wide array of perspectives, emphasizing the rapid evolution of AI capabilities and the necessity for dynamic regulatory guidance. The feedback underscores the importance of ongoing industry engagement, the complexities of the regulatory landscape, and the potential risks and benefits associated with AI, particularly concerning consumer outcomes and third-party model dependencies.
Key Points and Ideas

The industry suggests avoiding a rigid regulatory definition of AI due to its rapid evolution.
Stakeholders advocat...