Use Of AI In Finance Could Trigger Rise In Fraud: UK Watchdog

Nikhil Rathi, chief executive of the FCA, said in remarks made available to the media in advance of a speech, that he was already seeing AI-based business models requesting authorisation.

Applying artificial intelligence (AI) to financial services must go hand-in-hand with better fraud prevention and resilience to hacking and outages, Britain's Financial Conduct Authority (FCA) was expected to say on Wednesday.

Nikhil Rathi, chief executive of the FCA, said in remarks made available to the media in advance of a speech, that he was already seeing AI-based business models requesting authorisation.

AI's use can benefit markets, such as cutting prices for consumers, but also cause imbalances if "unleashed unfettered", Mr Rathi will say.