Question to the HM Treasury:

To ask His Majesty's Government what steps they are taking to support banks to overcome the barriers to the adoption of advanced fintech and artificial intelligence systems posed by outdated information technology infrastructure.

The government believes that the safe adoption of artificial intelligence (AI) by the financial services (FS) sector is a major strategic opportunity, with the potential to power growth across the UK. This includes banking which, as highlighted in the AI in Financial Services Survey led by the Financial Conduct Authority and the Bank of England, already benefits from AI innovations. Use cases mentioned include cyber security and fraud detection functions.

The government and the regulators are taking a pro-innovation stance to AI regulation across the economy including in financial services; and we are committed to continuing engagement with the sector and working with the regulators to monitor developments.

As part of the government’s Financial Services Growth and Competitiveness Strategy, the government will shortly be appointing a Financial Services AI Champion to act as a catalyst for AI adoption and innovation in the sector.