Leaders from the fintech and artificial intelligence (AI) sectors convened in Parliament last night to address the ethical and regulatory challenges that technology poses to the UK.
The “Fintech is Dead. Long Live FinAI” summit was organized by the Parliament Street think tank. Over 70 industry experts, academics, and executives participated in the discussion about AI’s impact on both public and private sectors in anticipation of Prime Minister Rishi Sunak’s global AI summit in November.
This summit followed comments from Securities and Exchange Commission head Gary Gensler, who expressed concerns regarding the unchecked growth of AI, warning that it could lead to a financial crisis within the next decade.
During the summit, Michael Mortenson, Associate Professor at the Gillmore Centre for Financial Technology, remarked, “We are witnessing the rise of genAI. Beyond just generating pictures and text, genAI’s capability to integrate human input with data analysis tools has significant potential to semi-automate traditional knowledge work associated with finance roles.”
Jamie Beaumont, founder of Playter, highlighted the challenges of regulating emerging technologies, stating, “One of the biggest problems I find is that regulating something you don’t fully understand is very hard. The trajectory of AI has accelerated dramatically over the past year, and with uncertainty about its future developments, how can we regulate it effectively?”
Dominic Duru, co-founder of DKK Partners, added, “If you can’t understand it, you can’t regulate it. The businesses have the insights on what needs to be curtailed.”
This sentiment was echoed by SEC chief Gensler, who remarked in an interview with the Financial Times that regulating AI presents a “hard challenge” due to the likelihood that multiple financial institutions may rely on the same foundational models. Many of these models are often developed by technology companies that are not subject to the same regulatory oversight as financial firms.
Gensler explained, “It’s a difficult challenge for financial stability because most of our regulations focus on individual institutions—individual banks, money market funds, brokers. This situation, however, involves a broader concern where many institutions may depend on the same underlying base models or data aggregators.”
Uday Samant, Minister of Industries of Maharashtra, India, who participated in the summit as part of a trade mission, advocated for a closer partnership between the UK and India regarding AI strategies. He proposed offering financial incentives to British firms for investments in India, where new developments include the establishment of an AI park. He stated, “The government provides state-of-the-art infrastructure within the AI Park, including office spaces, research facilities, and laboratories equipped with the latest AI technology, lowering initial setup costs for businesses.”