A new inquiry by the Treasury Committee is to consider the potential impacts of the increased use of Artificial Intelligence (AI) in the financial services sector.
The Committee now has a call for evidence open and is aiming to understand how financial services can utilise AI while protecting consumers against potential risks.
Figures recently published from the Bank of England showed that 75% of firms are already using AI, with a further 10% planning to use it over the next three years. The Committee suggested, however, that the launch of Chinese company DeepSeek had reminded observers of the volatility and rapidly evolving nature of the AI market.
The Committee may review the extent to which AI could jeopardise financial stability and question if there is the potential for increased cyber security risks.
MPs may also consider the potential impact on employment in the sector and ask how the UK compares to other countries in both its competitiveness and approach.
Chair of the Committee, Meg Hillier, said: “Successive governments have made clear their intention to embed and expand the use of AI to modernise the economy.
“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.
“It’s critically important the city can capitalise on innovations in AI and continue to be a world leader in finance. We must, though, also 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.”
The deadline for submissions to the Committee’s call for evidence is Monday 17 March.
