Financial Services: Artificial Intelligence
The question
To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of differences between UK and US approaches to artificial intelligence regulation on levels of competitive disadvantages for financial services firms.
Answered by Treasury
The UK has strong foundations for AI adoption in financial services. The government has set out an ambition for the sector to remain a global leader in the safe, responsible and effective use of AI. The government is committed to continued collaboration between industry, regulators and government to ensure the UK remains an attractive place to develop, deploy and scale AI-enabled financial services.
Similarly, this Government will continue to ensure that its international relationships work to support global financial stability, a cohesive regulatory landscape, and growth and investment in the UK. Strong partnerships with global financial centres are essential for sustaining the UK's leadership as a world-leading financial hub and supporting economic growth.
The UK engages regularly with the United States through bilateral forums, including the UK-US Financial Regulatory Working Group (FRWG). The 13th official meeting of the FRWG was hosted by HM Treasury in London on 8 July 2026. The Group discussed ongoing U.S. and UK cooperation across several key themes, including Artificial Intelligence (AI).
Participants exchanged views on their approaches to AI in financial services, to support responsible adoption across the financial sector. Both UK and U.S. authorities discussed ways to work together and with the financial services industry to realise the potential of the technology, while mitigating potential risks.
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