Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact of the use of artificial intelligence by financial services for financial decision-making processes, such as underwriting and credit pricing, on UK financial stability.

The Bank of England’s Financial Policy Committee (FPC) is responsible for identifying and addressing risks to the UK financial system. The FPC’s latest remit was set out by the Chancellor in November 2024. It notes that whilst recognising the significant economic opportunities presented by emerging technologies, including Artificial Intelligence, the Committee should continue to consider potential financial stability risks associated with their widespread adoption.

The FPC’s April 2025 ‘Financial Stability in Focus’ report sets out the Committee’s view on the financial stability implications of AI, including in relation to the use of AI in banks’ and insurers’ core financial decision making. It also sets out the FPC’s approach to monitoring and mitigating risks from AI.