Britain’s financial regulators should start stress-testing the risks posed by artificial intelligence because their current wait-and-see approach leaves the public and economy in danger of “serious harm,” a group of lawmakers warned.
The Bank of England, the Financial Conduct Authority and the Treasury are failing to keep up with the threat from AI, which is now used by more than three quarters of U.K. financial services firms, Parliament’s Treasury Select Committee concluded in a new report. One obvious place to start is assessing the potential fallout from AI-driven market shocks, it said.
Financial institutions are