How do you provide assurance on your AI controls amid evolving regulatory demands?
In this episode of the PIMFA Podcast, host Philip Allen speaks with Priscilla Gaudoin, Ruleguard’s Head of Risk and Compliance, about the FCA and PRA’s perspectives on AI in financial services.
They discuss key AI benefits, such as efficient decision-making and improved service, alongside potential risks, including data exploitation, bias, and algorithmic governance failures.
Priscilla also shares insights on how firms can demonstrate responsible AI use, maintain transparency, and meet regulatory expectations, particularly around consumer duty and product governance.
In our podcast, find out more on:
- How Regulators Champion AI
The FCA and PRA see AI as a significant opportunity for financial services but highlight potential harm to consumers, data privacy issues, and unintended biases.
- Why Human Oversight Remains Essential
Despite automation, decision-making shouldn’t be left solely to algorithms. Regulators expect firms to maintain clear human accountability and robust governance structures.
- Why it's Crucial to Demonstrate Responsible Use
Firms must demonstrate their ability to identify and manage AI risks, focusing on consumer outcomes, fairness, and the avoidance of exploitative practices.
- How Compliance is Underpinned by Data and Ongoing Analysis
Gathering quality data and analysing it effectively is essential, especially in product governance. This can help firms spot problems early and satisfy growing regulatory reporting demands.
- How Clarity and Transparency Win Regulator Confidence
Openness about where, why, and how AI is used builds trust. Firms that clearly communicate their AI solutions' benefits, limitations, and controls stand out to regulators.
Want to learn more about AI in the Regulatory World? We have several interesting reads which you can access for free.
