Written evidence submitted by Anna Katsoulaki

Katsoulaki, Anna 2025. Written evidence submitted by Anna Katsoulaki. Written evidence / Treasury Committee UK Government.

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Abstract

AI technologies offer transformative potential for UK financial services but they also introduce new risks that must be managed. This submission addresses how government and financial regulators can strike the right balance between seizing the opportunities of AI and protecting consumers while safeguarding financial stability. It finds that the UK’s current regulatory framework relies on existing rules and principles and has favoured legal oversight. While this encourages innovation, it can have the opposite results, with ambiguity about AI governance deterring banks and fintechs from investing in cutting-edge AI tools due to uncertainty, compliance fears, and cost concerns. In the dilemma innovation v. regulation, stronger targeted regulation of AI where needed, might be the right answer that will not undermine innovation, as perceived.

Item Type:	Working paper
Date Type:	Publication
Status:	Published
Schools:	Schools > Law
Additional Information:	Handle ID: AIFS0082
Publisher:	UK Government
Date of Acceptance:	May 2025
Last Modified:	01 Sep 2026 13:30
URI:	https://orca.cardiff.ac.uk/id/eprint/189246

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