Impact of AI on pensions and finance sector to be explored in new inquiry
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The Treasury Committee has launched an inquiry into the impact of artificial intelligence on banking, pensions and other financial services. The inquiry accepts evidence until 17 March, with MPs saying they want to hear from “a range of voices” including the finance industry, AI sector, consumers and experts.
The committee cited “the volatility and rapidly evolving nature of the AI market”, saying it wants to explore how AI is currently used by City firms as well as what opportunities it brings for innovation in the financial services sector. It might 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.
The committee cited “the volatility and rapidly evolving nature of the AI market”, saying it wants to explore how AI is currently used by City firms as well as what opportunities it brings for innovation in the financial services sector. It might 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.
In addition, MPs could review the extent to which AI could jeopardise financial stability and question if there is the potential for increased cyber security risks. They want to understand what safeguards may be needed to protect financial consumers, particularly vulnerable ones who may be at risk of bias.
“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,” said the committee chair, Dame Meg Hillier.
“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,” she added.
Questions the committee will consider include:
- How is AI currently used in different sectors of financial services and how is this likely to change over the next 10 years?
- To what extent can AI improve productivity in financial services?
- What are the risks to financial stability arising from AI and how can they be mitigated?
- What are the benefits and risks to consumers arising from AI, particularly for vulnerable consumers?
- How can Government and financial regulators strike the right balance between seizing the opportunities of AI but at the same time protecting consumers and mitigating against any threats to financial stability?
