Carlyle Financial Services Breakfast

Kent started a discussion around the opportunities and challenges that AI is presenting across the FS landscape and our guests added some relevant insights from their various segments and roles within the industry.

We discussed growing use of AI in areas such as:

• the auto-extraction of regulatory obligations from the many heavy documents issued by Regulators, with AI both monitoring and translating at pace the new requirements demanded of FS businesses;
• using AI and Gen AI to simulate events and test the related control efficiencies; and
• the dynamic creation, management and refresh of the many policies issued and maintained in an FS business.

Some key takeaways included:

• take time to educate your leadership and teams around AI and Generative AI, including establishing consistent use of terminology across the business. There remains a huge knowledge gap which in turn is impacting confidence, progress and management of AI;
• establish very clear accountabilities and responsibilities, including for the risks associated with AI - but keep the governance frameworks light and nimble so that they facilitate rather than hinder progress; and
• transparency, traceability and reliability are paramount not just to ensuring effective and real value creation from AI but also to comply with GDPR and other regulatory obligations.

The consensus from around the table was that AI presents more of an opportunity than a threat. But this only holds true if the UK's FS businesses work at pace and in collaboration with Regulators to keep up with their international and technology industry counterparts, allowing them to maintain the ability and mandate to both protect and better serve their customers.