The Treasury Committee has opened an inquiry into the impact of artificial intelligence in financial services and will ask whether it poses a risk to economic stability.
The committee, led by Labour chair Dame Meg Hillier, has called for evidence “to understand how financial services can utilise AI while protecting consumers against potential risks”.
Around 75% of firms already use AI, while a further 10% plan to use it over the next three years, according to the Bank of England.
But the MPs’ body points to the emergence of cut-price Chinese AI system DeepSeek, which last week caused more established US tech stocks to tumble, as a reminder “of the volatility and rapidly evolving nature of the AI market”.
The committee will look at the opportunities for innovation in the financial sector, the impact on employment, “and how the UK compares to other countries in both its competitiveness and approach”.
It adds that it, “may review the extent to which AI could jeopardise financial stability and question if there is the potential for increased cyber security risks.
“MPs also want to understand what safeguards may be needed to protect financial consumers, particularly vulnerable ones who may be at risk of bias.”
Hillier says: “Successive governments have made clear their intention to embed and expand the use of AI to modernise the economy.
“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.”
