Overview
- A cross‑party Treasury Committee said a wait‑and‑see stance by the Bank of England and the Financial Conduct Authority leaves consumers and financial stability exposed to potential serious harm.
- The report urges the BoE and FCA to run AI‑specific stress tests to help firms prepare for AI‑driven market shocks.
- It asks the FCA to publish practical guidance by the end of 2026 on how consumer protection rules apply to AI and who should be accountable inside firms.
- MPs want the government to designate critical AI and cloud providers under the Critical Third Parties Regime, noting no firms have been named more than a year after it was created.
- Roughly three‑quarters of UK financial firms already use AI, with risks cited from reliance on a few U.S. tech providers and AI‑driven trading herding; the FCA said it will review the report, and the finance ministry appointed Harriet Rees and Rohit Dhawan as AI Champions.