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ARTICLE · 09 JANUARY 2025

Compliance Considerations In AI

Macfarlanes LLP
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The UK financial services sector must prepare for increased AI oversight, aligning with principles like safety and transparency. Firms should develop AI strategies, ensure compliance with regulations, and consider cross-border rules as AI use expands...

United KingdomFinance and Banking
Alexandra Green
Alexandra Green
Michael Sholem
Michael Sholem
Rachel Serene
Rachel Serene

Though the United Kingdom has no purely AI-focused regulatory framework, financial services firms should prepare themselves for heightened supervision over their deployment of artificial intelligence and ensure compliance with a multitude of diverse and broadly-focused requirements. Alexandra Green and Michael Sholem set out how to approach this task.

The use of AI by financial services firms is not new but the use cases for it have grown significantly in the past few years particularly given the advent of generative AI. Firms are fast recognising that AI can be deployed at all levels of their organisation enhancing efficiencies and optimising the customer experience. In expectation that use cases will continue to evolve, the Financial Conduct Authority has recently launched a number of AIfocused initiatives, including November's AI Input Zone. The FCA is using the AI Input Zone (a development of the FCA's AI Lab) to gather stakeholders' views about current and

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