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LONDON — On Monday, the UK’s financial regulatory body revealed a partnership with the American chip manufacturer Nvidia aimed at enabling banks to safely explore artificial intelligence.
The Financial Conduct Authority (FCA) is set to introduce a “Supercharged Sandbox” that will provide companies with improved data access, technical skills, and regulatory guidance to enhance innovation.
Beginning in October, UK financial institutions will be permitted to test AI technologies utilizing Nvidia’s advanced computing and AI Enterprise Software products, as stated in a press announcement from the FCA.
This initiative targets businesses in the “discovery and testing” phases of their AI projects, with the FCA remarking that a separate live testing service is available for those further advanced in their AI development.
“This partnership will assist those eager to explore AI concepts but who may lack the necessary resources,” said Jessica Rusu, the FCA’s chief data, intelligence, and information officer. “We’ll support firms in leveraging AI to enhance our markets and benefit consumers, while also promoting economic growth.”
The FCA’s new sandbox seeks to address a significant concern for banks, which have struggled to deliver advanced AI tools to their clientele due to worries about privacy and fraud risks.
Large language models from companies like OpenAI and Google tend to send data back to international servers, prompting privacy authorities to raise concerns about data security and handling. Additionally, there have been multiple cases of criminals misusing generative AI to defraud individuals.
Nvidia provides the graphics processing units, or GPUs, essential for training and operating sophisticated AI models. The company’s CEO, Jensen Huang, is expected to present a keynote address at a tech conference in London on Monday morning.
Last year, Edward Achtner, the generative AI lead at HSBC, remarked at a tech conference in London that there appears to be “a lot of success theater” in finance regarding artificial intelligence, suggesting some financial institutions are promoting AI advancements without meaningful innovations to demonstrate.
He added that while banks like HSBC have been utilizing AI for many years, newer generative AI technologies such as OpenAI’s ChatGPT introduce unique compliance challenges.
