BoE Launches AI Consortium to Shape Safer AI Use in Finance

The Bank of England (BoE), in collaboration with the Financial Conduct Authority (FCA), has officially introduced the AI Consortium—a structured public-private forum aimed at understanding how artificial intelligence is shaping financial services in the UK.

Announced in September 2024 and formally launched on 2 May 2025, the Consortium brings together 28 individuals from financial institutions, technology companies, fintechs, and academic circles. Co-chaired by Sarah Breeden (BoE’s Deputy Governor for Financial Stability) and Sarah Pritchard (FCA’s Executive Director for Markets and International), the group will meet quarterly to exchange ideas on AI development, its practical applications, and emerging concerns in the sector.

What the Consortium Will Focus On

The initiative has three clear priorities:

• Explore how AI is being applied across the financial sector.
  
  
• Discuss both the value and the risks involved.
  
  
• Inform BoE and FCA policies to ensure AI adoption remains responsible, safe, and aligned with public interest.
  
  

The group’s work is advisory in nature and will not influence formal regulation. Members will contribute as individuals, not as corporate representatives.

AI’s Rapid Uptake in Finance

A recent BoE-FCA survey found that 75% of financial services firms are already using AI, with another 10% planning to implement it within three years. Of all use cases, foundation models—large-scale AI models trained on wide-ranging datasets—now account for 17%, highlighting how quickly complex systems are being explored.

Key benefits of AI reported by firms include:

• Improved fraud detection and anti-money laundering processes
  
  
• Better use of data for insights and forecasting
  
  
• Enhanced cybersecurity
  
  

Over the next three years, firms anticipate even more gains in productivity, operational performance, and cost savings.

What’s Holding Back AI Use?

Despite the promise, there are ongoing concerns. Regulatory barriers include:

• Data privacy and protection laws
  
  
• Rules related to cybersecurity and third-party involvement
  
  
• The FCA’s Consumer Duty obligations
  
  

Non-regulatory obstacles are also significant:

• The need for robust, secure AI systems
  
  
• Shortage of skilled professionals to support implementation and oversight
  
  

A History of Engagement

This is not the BoE’s first initiative on AI. The AI Public-Private Forum (AIPPF), launched in 2020, laid the groundwork. It focused on practical challenges in areas like data handling, model integrity, and accountability.

Since then, several reports and updates have continued the conversation:

• 2022: Final AIPPF Report with 21 strategic recommendations
  
  
• 2022–2023: AI and Machine Learning discussion papers and feedback statements
  
  
• 2024: BoE and FCA responses to the UK government’s AI regulation white paper
  
  

What It Means for the Future

While the AI Consortium will not shape direct policy or regulation, it offers a collaborative space for keeping pace with rapid changes in technology. It also helps ensure the financial sector remains well-informed about both the benefits and the responsibilities that come with AI adoption. At Techno Exponent, we believe this kind of structured dialogue is essential. Building solutions that are effective and secure starts with awareness, shared learning, and ethical alignment. We’re closely following these developments to support our clients in financial services and beyond—using AI thoughtfully and responsibly.