UK regulators explore AI integration for data efficiencies

The UK Financial Reporting Council (FRC) recently hosted a meeting of UK regulators to discuss the integration of artificial intelligence (AI) applications to improve efficiencies across various sectors.

Senior figures from nine UK regulatory bodies, including the Financial Conduct Authority and HM Revenue & Customs, participated in discussions with AI experts from Aiimi, a British firm focused on data insights. The UK is recognised for its expertise in open and structured data, and the forum addressed ways to exploit this advantage through AI.

The focus was on identifying AI use cases that could offer cost savings, drive efficiencies, and stimulate economic growth. These efforts align with a newly unveiled governmental plan aiming to enhance operational efficiencies across UK regulators.

Paul Maker, Chief Technology Officer at Aiimi, reflected on the UK's advantageous position in harnessing AI technology. "UK regulators deal with unprecedented amounts of digital information and uphold unique levels of transparency," he noted. "The potential value of this data for stakeholders and the overall economy is huge. For regulators managing sprawling documents and siloed data of all types, there are challenges as well as opportunities, many of which we've covered today. The main takeaway? Rich and well-governed data is AI rocket fuel. And regulators that leverage the technology to get their data estates in order have all the right ingredients."

The meeting's attendees comprised 30 senior managers, technology leaders, and data specialists, mainly from financial regulatory bodies. They explored obstacles such as defining AI's value and improving data quality.

Tim Lloydlangston, XBRL Lead at HMRC, emphasised the potential of AI to streamline data management: "HMRC is particularly data rich as we have a lot of data sources. This includes merchant-acquired data and data from banks as well as tax returns - within Corporation Tax we've got three million customers. So matching those datasets is a massive challenge. AI could help automate that process."

Thomas Toomse-Smith, Head of Innovation and Digital at the FRC, shared insights into an ongoing AI application. He outlined how their data viewer platform is facilitating public access to reporting data, enhancing its accessibility for investors and businesses.

Josephine Jackson, Director of International Audit Policy at the FRC and Chair of the FRC's Technology Working Group, pointed out the potential of AI to enhance compliance and transparency. "Harnessing structured data through AI holds the opportunity to enhance decision making processes, but also enhance transparency and compliance by enabling greater precision and tracking analysis and reporting of information. This directly speaks to our internal strategies at the FRC."

Phil Fitz-Gerald, Director of Digital Reporting & Taxonomies at the FRC, considered AI's role in making data more user-friendly. "Today has really made me think about the data we hold as an organisation, and how we can structure that in a way that maximises the use of AI... If we make data available for the public in a way that they can easily access, use, and analyse, we can support investment in business throughout the UK."

Marc van Gestel, Senior Supervision Officer at the Dutch Authority for the Financial Markets, encouraged international collaboration. "From algorithmic trading and consumer credit acceptance, to AI use in auditing and sustainability reporting... AI and automation continue to reshape capital markets, and regulators must stay ahead of the curve. The most important thing for us is international collaboration. We hope to partner with the UK and other regulators to share insights [and] strengthen global oversight efforts... It was really insightful today to speak to new colleagues and see what they're doing with data and AI. We'll stay in touch and exchange ideas and concepts that hopefully we can roll out in the UK and in the Netherlands."