UK fintech leaders have regulation concerns over Generative AI

More than 90 per cent of fintech bosses believe the UK Government should introduce stricter regulations for Generative AI, according to research from the Gillmore Centre for Financial Technology.

The game-changing technology is impacting every sector and fintech is no different, with 93 per cent of senior decision makers surveyed believing its implications are so big that regulation is urgently needed.

And more than three-quarters (77 per cent) say they are not happy with the Prime Minister’s approach to Generative AI (Gen AI) despite Rishi Sunak recently hosting governments and global leaders at Bletchley Park for the AI Safety Summit, which included an official fringe event at WBS London at The Shard on regulating AI. Indeed, 85 per cent of fintech senior leaders admitted to worrying about the security risks posed by Gen AI.

The report, titled In the AI of the storm: How UK financial services firms are using AI and polled via independent polling agency Censuswide, surveyed 250 senior decision makers at UK financial institutions and banks to measure how they felt about the current state of AI and its widespread use.

It finds that 89 per cent believe Gen AI helps financial criminals exploit organisations even more, and 29 per cent of companies have even taken the step of banning the use of AI – 11 per cent implementing a full ban, 18 per cent a partial ban, and 37 per cent are considering some form of ban.

It backs up claims at the WBS London fringe event revealed in research by James Hayton, Professor of Innovation and Entrepreneurship,  entitled What drives UK firms to adopt AI and robotics, and what are the consequences for jobs?, that the rapid adoption of AI by big and small firms means the time for action by governments is now.

The report reveals 84 per cent of bosses have set up a sandbox environment to experiment with Gen AI applications within their organisation, but a significant amount (90 per cent) feel that academic research is necessary for them to trust Gen AI.

Ram Gopal, Director of the Gillmore Centre for Financial Technology, said: “It is understandable that there is some hesitancy around the adoption of Generative AI, but it can facilitate much knowledge sharing and be creative in the way it pulls together and integrates ideas, with the potential to revolutionise the way we work and live.

“University research centres can play a significant role in the experimentation of and input on AI and its development, offering robustly tried-and-tested outcomes for everyone.

“In collaboration with other tech leaders and governments, we must make sure that AI’s regulation balances putting safety first without impinging on innovation and forcing firms to put innovations on the back burner.

“Much of AI’s capabilities are yet to be seen, meaning a plethora of unprecedented benefits are still to be unlocked, and its risks need to be carefully monitored.”

On a more positive note, 93 per cent of senior decision makers believe Gen AI is going to revolutionise the fintech and financial services sector, and a further 91 per cent are convinced it will play a vital role in financial democratisation.

To read the full report In the AI of the storm: How UK financial services firms are using AI click here.

Ram Gopal is Professor of Information Systems and Director of the Gillmore Centre for Financial Technology.

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