Question to the HM Treasury:

To ask His Majesty's Government what steps they are taking to ensure that the adoption of agentic AI systems by banks is aligned with existing financial services consumer protections and regulatory standards.

The Government is working closely with industry and regulators to ensure that the adoption of Artificial Intelligence (AI) systems by banks is aligned with existing financial services consumer protections and regulatory standards.

The treatment of customers by UK banks and building societies is governed by the Financial Conduct Authority (FCA), the independent regulator of the UK’s financial services sector. The FCA’s Principles for Businesses require firms to deliver a prompt, efficient, and fair service to all customers. In addition, the FCA’s Consumer Duty requires firms to act in good faith, avoid foreseeable harm, and act in consumers’ best interests.

The use of AI, including agentic AI, does not absolve firms from their regulatory responsibilities or the need to comply with relevant laws and regulations.

In April 2024, the FCA published an update to its regulatory approach to AI, making clear that where firms use AI as part of their business operations, they remain responsible for ensuring compliance with FCA rules.