AI guidance aims to support safer financial innovation

By Milan Rojan

A new review has highlighted the growing role of artificial intelligence (AI) in financial services, calling for greater collaboration between industry, regulators and technology providers to ensure the technology is adopted safely while supporting innovation and long-term competitiveness.

The review has found that AI is becoming increasingly embedded across the financial sector, with firms using the technology to improve customer service, strengthen fraud detection, automate compliance processes, enhance risk management and increase operational efficiency. However, it has also noted that broader adoption brings new challenges around governance, data quality, model oversight and operational resilience.

According to the review, financial institutions should strengthen internal AI governance by establishing clear accountability, improving model validation processes and ensuring greater transparency over how AI systems are developed and deployed. It has also emphasised the importance of maintaining appropriate human oversight for high-impact decisions.

The review has further highlighted that smaller firms often face barriers to AI adoption, including limited access to specialist skills, quality data and computing resources. It has suggested that greater collaboration across the financial ecosystem could help widen access to AI capabilities while encouraging responsible innovation.

Alongside governance, the review has identified cybersecurity, data protection and third-party technology dependencies as areas requiring continued attention as AI becomes more deeply integrated into financial services. It has said firms should regularly assess operational risks and strengthen resilience frameworks to manage evolving threats.

The publication has also encouraged closer cooperation between financial institutions, policymakers, academic organisations and technology providers to develop common standards, promote knowledge sharing and support responsible AI deployment across the sector.

The recommendations come as financial institutions continue to increase investment in AI-driven technologies to improve productivity, customer experience and decision-making. The review has concluded that a balanced approach combining innovation with strong governance will be essential to maintaining trust, supporting competitiveness and enabling the financial services industry to realise the long-term benefits of artificial intelligence.