UK exposed to ‘serious harm’ by failure to tackle AI risks, MPs warn

The Guardian - World NewsCenter-LeftEN 3 min read 100% complete by Kalyeena Makortoff Banking correspondentJanuary 20, 2026 at 01:01 AM

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medium article 3 min

A UK parliamentary committee has warned that the government and financial regulators are failing to adequately address the risks posed by artificial intelligence in the financial sector. The Treasury Committee's report criticizes the "wait-and-see" approach despite widespread AI adoption by City firms for tasks like insurance claims and credit assessments. Concerns include potential harm to vulnerable consumers, increased fraud, cybersecurity risks, over-reliance on a few US tech companies, and the amplification of "herd behavior" that could trigger a financial crisis. The committee urges the Bank of England, FCA, and government to develop specific AI regulations and ensure accountability, citing a lack of transparency and preparedness for major AI-related incidents.

Key Entities & Roles

Key Player Opposition Context

City of London 40% Google 50% Meg Hillier 60% Treasury Committee ×375% Bank of England ×380% Financial Conduct Authority (FCA) ×385% UK ×290%

Keywords

artificial intelligence 100% ai risks 90% financial system 80% financial regulation 70% consumer protection 70% financial crisis 60% bank of england 60% fraud 50% cybersecurity risks 50% treasury committee 50%