Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact of legacy IT infrastructure on the ability of UK banks to adopt new financial technology and AI systems.

The Government recognises that legacy IT infrastructure can present challenges for UK banks as they seek to adopt new financial technology and Artificial Intelligence (AI) systems.

However, the Government believes that safe adoption of AI by the financial services sector is a major strategic opportunity, with potential to power growth across the UK. The Government and regulators are taking a ‘pro-innovation’ approach to AI regulation across the economy and in financial services.

The Government is focused on ensuring that the UK’s policy and regulatory environment is fit for purpose to seize the opportunity of our dual strengths in financial services and AI, and positioning the UK as a world leader in the safe adoption of AI in financial services.

The Financial Services Growth and Competitiveness Strategy is an important part of that effort, with the appointment of an AI Champion intended to act as a catalyst for AI adoption and innovation in financial services.