Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the implications of limited access to frontier artificial intelligence models for the competitiveness of the UK's financial services sector.

The government believes that the safe adoption of artificial intelligence (AI) by the financial services sector is a major strategic opportunity, with the potential to power growth across the UK. As set out in the Financial Services Growth and Competitiveness Strategy, it is the government’s ambition to make the UK ”the world’s most technologically advanced global financial sector”, leveraging our dual strengths in Financial Services (FS) and AI to drive growth and productivity, and deliver consumer benefits.

The FS AI Adoption Plan, authored by the FS AI Champions, Harriet Rees and Rohit Dhawan, is an important step towards achieving that aim, and sets out the next steps for industry, regulators, and government to grasp the opportunities for safe adoption of AI in FS.

The government works closely with the Financial Conduct Authority, the Prudential Regulation Authority, and the AI Safety Institute to monitor developments in AI capability and access across the sector.

The government is aware that access constraints may arise for a number of reasons, however it is not currently concerned about the availability of frontier models for UK FS firms.

The government will continue to monitor this issue and will consider what further steps may be necessary to ensure that the UK financial services sector can access the AI capabilities it needs to remain globally competitive. We are also supporting the UK’s own sovereign AI capabilities through the Sovereign AI Unit backed by £500mn of funding.