The BoE and FCA have published a report on their third survey of AI and machine learning in UK financial services.
Use and adoption
The regulators found that 75% of firms already use AI, with a further 10% planning to do so in the next 3 years. This is a jump from the 2022 figures of 58% and 14% respectively.
Foundation models formed 17% of all AI use cases.
Third-party exposure
Approximately 1/3 of use cases were third-party implementations, up from 17% in 2022. The regulators highlighted this as an indication of third-party exposure continuing to rise as the complexity of models increases, and outsourcing costs decrease.
The top 3 third-party provisions accounted for 73%, 44% and 33% of all reported cloud, model, and data providers respectively.
Automated decision-making
Around 55% of use cases had some degree of automated decision-making, with 24% being semi- autonomous i.e. designed to involve some level over human oversight for critical or ambiguous decisions. Only 2% of use cases
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