AI in financial services: enabling innovation with confidence
By David Eacott, Executive Director of Supervision
It was a pleasure to join colleagues from across the Global Financial Innovation Network (GFIN) in Jersey for this year’s annual general meeting and conference, and to take part in a panel discussion on how firms are adopting artificial intelligence across financial services.
While it will take time for the benefits of this technology to be fully unlocked, AI is already changing how firms operate. For regulators, the opportunity is to take a pragmatic and proportionate approach that supports innovation and growth, while continuing to safeguard customers and trust in financial services.
Used effectively, AI can help firms streamline processes and make better use of information. This has the potential to improve service quality and efficiency at a time when many businesses are facing cost pressures and rising customer expectations.
For jurisdictions like Jersey, this matters. Firms here are competing internationally against businesses investing heavily in technology to deliver better outcomes at lower cost.
To unlock these benefits, firms need strong foundations. Reliable infrastructure and good data capabilities are essential, and we encourage businesses to sequence their investment to build capability.
People are just as important as the technology. We see the greatest value when senior leaders understand how AI can support business strategy, and where its limitations lie. Investment in skills help firms get more from these tools and embed them effectively into day to day operations.
Alongside these opportunities, there are broader considerations that firms across the sector are grappling with. Given AI systems provide the most likely response based on data and context, rather than producing the same output every time, this can make consistency and explainability harder to achieve both of which are critical in a regulated environment. It is important that firms build in appropriate governance and human oversight to mitigate this risk.
Supporting this kind of responsible adoption is a priority for the Jersey Financial Services Commission. In line with Jersey’s competitiveness focus, we are keen to work alongside firms as they explore new uses of AI. We particularly welcome early conversations where businesses are developing or scaling new approaches.
We will publish our guidance on artificial intelligence shortly. This will set out key considerations for firms and support an open conversation as they design and use AI solutions. Our aim is to provide the clarity and support that businesses need to innovate with confidence.
It was a very engaging discussion at GFIN, and thank you to colleagues and participants for the thoughtful questions. There is a real opportunity ahead as both a regulator and a jurisdiction, and we look forward to continuing to work with firms as this technology continues to develop.