Lady Mayor: London can shape the global conversation on trusted AI

As the United Kingdom prepares to host the G20 presidency in 2027, there exists a golden opportunity to unite international partners and guide the global dialogue on trustworthy artificial intelligence (AI), according to Susan Langley, the Lady Mayor of the City of London. The UK's financial sector thrives not solely on its market strength, talent depth, or international network reach; it chiefly depends on trust.

Langley asserts that capital gravitates towards environments where regulations are clear, risks are managed, and institutions uphold the highest standards. Regulators worldwide hold paramount significance in instilling this confidence, thereby transforming the UK into a hub where businesses wish to invest and expand.

During her upcoming Financial Conduct Authority and Prudential Regulation Authority-hosted City Regulators' Dinner, Langley will emphasize the necessity for a regulatory framework that keeps pace with advancements in AI, digital assets, and tokenisation. A key to success will be striking a balance between robust regulation and a conducive atmosphere for innovation. This delicate equilibrium will be essential in maintaining the UK's competitiveness amidst the evolving global financial landscape.

The City of London Corporation's Regulating for Growth report, released last year, proposes actionable recommendations for more predictable and proportionate regulation, minimizes unnecessary burdens, and strengthens engagement between regulators and the industry. This isn't an appeal for deregulation on an unprecedented scale or the transformation of the City into the "wild west" of financial hubs; instead, it advocates for greater flexibility and simplification within the financial domain.

The UK has already welcomed progress since the report's publication, and regulators are committed to delivering a framework that fosters growth while preserving the standards that define the UK's reputation.

London can play a pivotal role in spearheading the AI conversation, working in unison with industry, government, and regulators. Initiatives such as OFI Financial Services, a single entrance and concierge service for international firms seeking to establish a presence in the UK, exemplify this approach. By assisting businesses in navigating the regulatory terrain and understanding requirements earlier, we can simplify the process of investment in the UK.

International investors frequently express the importance of clarity and predictability regarding the long-term direction of regulation when deciding where to invest. The next challenge lies in ensuring that the progress made translates into a consistently positive experience for firms of all sizes, a feat that becomes increasingly crucial in the face of technological advancements reshaping financial services.

Artificial intelligence (AI) holds immense potential to boost productivity and unlock new products and services. Digital assets and tokenisation could revolutionize how financial instruments are traded, rendering markets more efficient and accessible. Langley believes that, in the era of AI and emerging digital technologies, the financial services sector in the UK stands poised to lead the way in another Industrial Revolution.

However, the UK must also foster greater international cooperation on AI's use in financial services. Establishing common principles, enhancing regulatory interoperability, and fostering closer collaboration between standard-setting bodies can empower businesses to innovate across markets while maintaining stringent safeguards.

As the UK prepares to host the G20 presidency in 2027, Langley affirms an ambition for the UK to shape the international agenda on AI. Financial services should play a critical role in this endeavor. By leveraging the UK's expertise in financial regulation, we can construct approaches that promote innovation while safeguarding public confidence.

It is now imperative to build upon the UK's legacy of world-leading regulation, collaborating both domestically and internationally to ensure that our regulatory strengths continue to serve as a source of competitive advantage.