UK's FCA publishes examples of good and poor AI practice in financial services
Sorted AI21 OctThe UK Financial Conduct Authority published examples of good and poor practice from firms using AI on 19 October, drawn from its industry engagement, supervisory work and AI Lab projects. The FCA says the examples are illustrative and do not create new requirements; existing rules such as the Consumer Duty still apply, and firms remain responsible for AI systems they develop, procure and deploy. Good practice includes deciding which tasks AI should support, automate or leave to staff, testing outcomes across different consumer groups, and piloting lower-risk uses before full deployment. Areas for improvement include building a tool before defining the consumer problem, and automatically excluding customers with vulnerability indicators from AI journeys without giving them another way to get support.
Why it matters: If you use AI with customers in lending, insurance or payments, this works as a free checklist from a major regulator: decide where AI hands off to a person, test it on different customer groups, and keep a human route for vulnerable customers.
Financial Conduct Authority ↗AI-assisted, reviewed by Sorted AI
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