The Treasury Committee has launched an inquiry to consider the potential impacts of the increased use of artificial intelligence (AI) in financial services.

Its call for evidence is open, seeking to understand how financial services can utilise AI while ensuring that consumers are protected against potential risks.

The inquiry will explore how AI is being used by firms and look at the potential opportunities it brings for innovation within financial services.

Financial stability and cybersecurity risks will also be on the agenda, with MPs wanting to understand what safeguards may be needed to protect consumers.

The call for evidence, which closes on 17 March, will also ask how AI is being used and how this was likely to change over the next 10 years, as well as the extent it can improve productivity in financial services, and how the government and regulators can balance seizing AI opportunities while protecting consumers.

“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,” commented Treasury Committee chair, Dame Meg Hillier.

“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.”

Simplify Consulting wealth consultant, Nina Cherry, said: "This is an opportunity for firms to provide their input as to the use of AI is well timed.

“There are so many innovative use cases for the application of AI within the industry and many of these are already bearing fruit. As this adoption gathers pace, we absolutely need to be mindful of the risks as well as the benefits, and we do need to understand the impact this will have on the workforce.

“AI is a powerful tool to support and empower people rather than replace them. It will be interesting to see the responses from this call for evidence and what direction the Treasury Committee decides to take as a result."

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