The Bank of England is taking a closer look at whether existing regulatory frameworks are sufficient to cover the use of artificial intelligence (AI) in finance, particularly in areas such as payments, trading, cybersecurity, and operations. The review is part of a broader effort by central banks to better understand how AI can be used to drive innovation and improve efficiency within their organizations.
Deputy Governor Sarah Breeden stated that existing regulatory frameworks are not designed to accommodate the autonomous nature of agentic AI, which refers to AI systems that can operate independently without direct human instruction. This includes the use of AI in complex financial transactions, such as payments processing and risk management.
The Bank of England's review is part of a growing trend among central banks to examine how AI will shape their business models and regulatory frameworks over time. As more banks and financial institutions explore the potential benefits of AI, regulators must adapt to keep pace with the rapidly evolving technology landscape.