Letter: Artificial intelligence and the use of machine learning in financial services: 2 February 2021

The FMLC understands that in order to have a better understanding of impact of Artificial Intelligence (“AI”) and Machine Learning (“ML”) on financial services, the Bank of England (the “BoE”) and the Financial Conduct Authority (the “FCA”) have established the Artificial Intelligence Public-Private Forum (“AIPPF”).  The Committee has sent a letter to the co-Directors of the AIPPF to congratulate BoE and FCA on this initiative. 

The letter also draws attention to the risks posed by AI in relation to the potential for algorithmic bias, herd behaviours and disruption of the level playing field, to the detriment of the financial markets.  In this regard, the FMLC, which benefits from strong and deep expertise in financial markets law among its members and has a long-standing interest in topics relating to Finance and Technology, offers the AIPPF any assistance the BoE and the FCA might find useful.

The letters to the Bank of England and the FCA are available for download.