An inquiry by the Treasury Committee will consider the potential impacts of the increased use of artificial intelligence (AI) in banking, pensions and other financial services.
The call for evidence is now open, as the committee seeks to understand how financial services can utilise AI while protecting consumers against potential risks.
Figures published by the Bank of England showed that 75% of firms are already using AI, with a further 10% planning to use it over the next three years.
However, the launch of ‘DeepSeek’ reminded observers of the volatility and rapidly evolving nature of the AI market.
This inquiry could explore how AI is currently used by firms as well as what opportunities it brings for innovation in the financial services sector.
MPs may also consider the potential impact on employment in the sector and ask how the UK compares to other countries in both its competitiveness and approach.
The committee plans to review the extent to which AI could jeopardise financial stability and question if there is the potential for increased cyber security risks.
MPs also aim to understand what safeguards may be needed to protect financial consumers, particularly vulnerable ones who may be at risk of bias.
Chair of the committee Dame Meg Hillier said: “Successive Governments have made clear their intention to embed and expand the use of AI to modernise the economy.
“My committee wants to understand what that will look like for the financial services sector and how the city might change in the coming years as that transformation gathers pace.
“It’s critically important the city can capitalise on innovations in AI and continue to be a world leader in finance.
“We must, though, also be mindful of ensuring there are adequate safeguards in place to mitigate the associated risks, particularly for customers.
“This piece of work will allow us to see the full picture.”
