BofE‑FPC Financial Stability in Focus: Artificial intelligence in the financial system
AI could revolutionize UK sectors, enhancing productivity and decision‑making, notably in finance by automating processes and refining decisions like underwriting. However, its rapid evolution raises uncertainties and financial stability risks, including systemic issues from flawed AI models, market instability, and cyber threats. The Financial Policy Committee (FPC) is assessing these risks to ensure safe AI adoption, supporting sustainable growth through vigilant monitoring and regulation.