UK finance watchdog wants firms to report AI failures and close calls
FCA seeks clear accountability as financial services embrace increasingly autonomous agents
The UK's financial watchdog is pushing for companies to report significant AI failures and near-misses in order to bolster safe adoption of autonomous systems in financial services. Financial Conduct Authority chief Jessica Rusu emphasized during a Bloomberg event that poorly governed AI could lead to consumer harm, cyber risks, and operational mishaps on a larger scale.
Existing regulations already mandate reporting of major incidents, but Rusu specified that this should now encompass significant AI failures and near-misses. The UK plays a substantial role in the financial sector, contributing 8% of national output, which is the fourth highest among OECD countries. UK AI Minister Kanishka Narayan confirmed the government's intention to collaborate with Parliament and experts to fortify the AI regime, focusing on identifying, reporting, and reviewing serious AI incidents, including reducing AI-driven risks across crucial services.
Steven Adler, co-founder of independent nonprofit Guidelight AI Standards, echoed this sentiment, drawing a parallel to aviation where reporting of near-misses is mandatory. However, as of now, the government has not yet committed to appending AI-specific measures to the Cyber Security and Resilience (Network and Information Systems) Bill.
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