The United Kingdom’s Financial Conduct Authority (FCA) announced a partnership with Nvidia, an American chip manufacturer, on Monday. The goal is to enable banks to experiment with artificial intelligence (AI) in a safe environment.
The FCA will introduce a “Supercharged Sandbox.” This program will provide financial companies with better data, technical skills, and regulatory help. The aim is to speed up innovation in the financial sector.
Starting in October, financial firms in the UK can use Nvidia’s advanced computing and AI software to test AI applications, according to the FCA.
This initiative is designed for companies that are in the early stages of exploring AI. For firms that are further along in AI development, the FCA offers a separate service for live testing.
Jessica Rusu, the FCA’s chief data officer, stated that this collaboration will assist firms that want to test AI but lack the necessary resources. She added that the FCA will help firms use AI to benefit markets and consumers, while also supporting economic growth.
The FCA’s sandbox program addresses a key challenge for banks. They have struggled to introduce new AI tools to customers due to concerns about privacy and fraud risks.
Large language models, such as those from OpenAI and Google, send data to overseas facilities. Privacy regulators have expressed concerns about how this data is stored and processed. Additionally, there have been cases of criminals using AI to scam people.
Nvidia produces the graphics processing units (GPUs) that are essential for training and running AI models. Nvidia’s CEO, Jensen Huang, is scheduled to speak at a tech conference in London on Monday.
Edward Achtner, HSBC’s AI lead, mentioned at a tech conference last year that some financial firms may be exaggerating their progress in AI without showing real product improvements. While banks like HSBC have been using AI for years, new AI tools like ChatGPT present unique compliance challenges.
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