Technology Working Group publishes report on AI

On 10 October 2024, the Technology Working Group (supported by the Investment Association) published its third and final report – Artificial Intelligence: Current and Future Usage Within Investment Management.

The Technology Working group, which is industry-led, was established to identify how the UK investment management industry could harness the potential of innovative new technologies. Its two previous phases of work focused on the application of distributed ledger technology to UK fund infrastructure through tokenisation.

Key recommendations of this final report, which focuses on artificial intelligence (AI), include:

• Establishing regulatory clarity and consistency to enable developers and users of AI to plan and invest with confidence. The Group has recommended closer coordination between regulators and the further development of AI standards and is supportive on the current direction of UK Government travel.
• Building a UK fintech ecosystem with strong international connections that investment management firms can leverage to gain access to innovative solutions, specialized knowledge, and valuable insights.
• Joint public and private sector action on AI-enabled fraud, to combat malicious actors and fight cybercrime and misinformation. The Group notes that this will be fundamental to building public trust in AI and supporting innovation efforts by well-intentioned organizations.
• Managing systemic risk through collective understanding and identifying best practice in risk management. The Group argues that the changing profile of systemic risk in the financial sector should not be a reason to hold back from innovating.