Bank of England Governor Andrew Bailey hit back at concerns that AI could lead to higher unemployment.
“Before I was a central banker, I was an economic historian. Economies adapt, employment adapts, and we learn how to deal with it. And people use machines more than machines alone. I think you'll get better results if you use it,” Bailey told the BBC.
Mr Bailey's comments came as the latest economic assessment showed that UK companies investing in AI are expected to see improved efficiency and output. Leveraging AI promises to improve productivity across multiple sectors.
But Baroness Stowell of the House of Lords warned that the UK risks “missing out on the AI gold rush” if it does not act quickly.
The Lords' Communications and Digital Committee report focuses on large-scale language models and tools such as ChatGPT. The report called for an update to copyright laws and asked the government to provide clarity on AI regulations, warning that too many regulations could hinder domestic AI development.
Both Mr Bailey and the Rose Committee seem to agree that the focus should be on leveraging the benefits of AI while managing legitimate risks.
The financial services industry also stands to benefit from responsible AI adoption.
“Generative AI offers potentially exciting benefits for financial institutions. For example, when it comes to fighting financial crime, AI can improve the accuracy and speed of detection by analyzing large datasets. ,” said Dr. Henry Barani, director of industrial regulation at Encompass Corporation.
However, Barani stressed that key roles such as know-your-customer (KYC) analysts are not replaceable at this time. “In return, existing processes will be accelerated and analysts' work will be enhanced to detect financial crime risks faster and more comprehensively,” he added.
“The greatest value of generative AI will only be realized if banks and financial institutions already have robust digital and automated processes in place to optimize the quality of data collected and provide deeper customer insights. By making this a priority now, banks can take full advantage of this new technology as it continues to evolve and mature.”
EXL research last month found that around 89% of UK insurance and banking companies had implemented an AI solution in the past year. However, data optimization issues often hinder its benefits.
(Image credit: bank of england under CC BY-NC-ND 2.0 Certificate license. Cropped from the original for better effect. )
See also: Experts from 30 countries contribute to global AI safety report
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