The smart money is on AI, says Bank boss

The Governor of the Bank of England, Andrew Bailey, has claimed that Artificial Intelligence will not lead to widespread job destruction. Emphasising the potential for humans to adapt and work alongside the new technology, Bailey explains that while there are risks, “there is great potential with it”.

The latest assessment of the UK’s economy indicated that businesses investing in AI are expected to see an increase in efficiency and production, claiming that utilising AI will bring benefits to productivity.

The UK hosted the world’s first AI Safety Summit in November 2023, where a declaration on managing the risks of AI was announced, but the UK has been warned by Baroness Stowell that the country could “miss out on the AI goldrush”.

The Lords Communications and Digital Committee’s report focused on large language models like generative power AI tools such as ChatGPT, highlighting need for copyright laws and government clarity. It also warns against excessive regulation to avoid hindering AI development in the UK.

Bailey claims that leveraging the benefits of AI alongside the human workforce will drive efficiency and innovation. The House of Lords committee similarly urges businesses to embrace the benefits of AI, rather than just focus on the risks.

Dr Henry Balani, Global Head of Industry & Regulatory Affairs at Encompass Corporation, said: “As Generative AI continues to dominate headlines across financial services, it brings potentially exciting benefits for financial institutions. When it comes to fighting financial crime, for example, AI can improve the accuracy and speed of detection by analysing large data sets.

“However, it is important to remember that Generative AI will not replace vital roles in the sector, such as that of Know Your Customer (KYC) analysts, now, or in the foreseeable future. It will instead accelerate existing processes and augment the work of analysts, empowering them to detect financial crime risk more quickly and comprehensively.

“The maximum value of Generative AI can only be realised if banks and financial institutions have already put in place robust digital and automated processes to optimise the quality of data collated and deliver deeper customer insights. By prioritising this now, banks will be well equipped to take advantage of this new technology as it continues to evolve and mature.”

Separately, more than 70 fintech industry leaders gathered in Parliament to discuss the challenges and opportunities of the increased use of AI in business. Hosted by Dean Russell MP for Watford and chaired by Steven George-Hilley of Centropy PR, they discussed how AI should be regulated and deployed to empower economic growth.

Fintech expert and AI industry veteran Bob Booth, Head of Strategy Enablement at Basware summed up the mood when he’s said: “AI presents a huge opportunity to unlock growth by liberating businesses from complex, admin-heavy tasks and rapidly accelerating digital transformations.”
“For those organisations that get AI right, the impact that this technology will have on critical functions like sales and finance will be seismic, freeing up time, reducing overheads and allowing talent to thrive in a new world of work.”