By Kalyeena Makortoff
Publication Date: 2026-01-20 00:01:00
An influential parliamentary committee has warned that “significant harm” is being done to consumers and the UK financial system because the government and the Bank of England have failed to manage the risks posed by artificial intelligence.
In a new report, Finance Committee MPs criticize ministers and city regulators, including the Financial Conduct Authority (FCA), for taking a “wait and see” approach to the use of AI across the financial sector.
This comes despite concerns that the burgeoning technology could disadvantage already vulnerable consumers or even trigger a financial crisis as AI-led companies make similar financial decisions in response to economic shocks.
More than 75% of city businesses now use AI, with insurance companies and international banks among the largest users. It is used to automate administrative tasks or even assist with core operations, including processing insurance claims and assessing customers’ creditworthiness.
But Britain has failed…
