Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what steps they are taking to ensure that regulation of retail financial markets remains effective as AI adoption in fintech increases.

HM Treasury works closely with the UK financial regulators to monitor evolving risks from new technologies, and ensure that the opportunities AI presents can be realised in a safe and responsible way. This includes engaging closely with the Financial Conduct Authority, and we support the approach it is taking to encourage the safe adoption of AI in financial services.

Alongside this, we have launched a new Centre for AI Measurement to develop new AI assurance tools and strengthen the UK AI Assurance ecosystem; committed to preserving the capability, trust, and collaboration of the AI Security Institute. We also concluded a call for evidence on the AI Growth Lab, a cross-economy AI sandbox, to inform further development and identify priority areas.

The government will act where these laws and initiatives are not enough to ensure AI security and we are exploring whether additional protections are needed.