BoE and PRA response on AI in financial services

The Bank of England (BoE) has published a joint letter from the BoE and the UK Prudential Regulation Authority (PRA) to the chancellor of the exchequer and relevant secretaries of state, setting out their approach to enabling the safe and responsible adoption of AI in the UK financial sector. The letter responds to a request of 28 January to publish a plan explaining how the authorities will help enable safe AI driven innovation as well as to report annually on how their supervisory and regulatory approach supports AI driven innovation and growth.

Planned work for this year includes:

• Embedding AI as a supervisory priority for 2026, with increased focus on AI‑related risks and practices through supervisory dialogue with firms.
• Conducting the next edition of the biennial survey of AI adoption across Bank‑ and FCA‑regulated firms.
• A report from the AI consortium on its work, including on generative AI and emerging trends such as the rise of agentic AI.
• Ongoing coordination with domestic and international regulators and standard‑setting bodies (such as the G20, G7 cyber expert group and DRCF) on AI risk management and good practice.
• Expanding the BoE's internal use of AI to support and enhance its own capabilities.

Going forward, the PRA's annual business plan and annual report will update on how its approach has enabled AI driven innovation and growth, referring to wider BoE initiatives where appropriate. Separately, the DRCF published a paper on agentic AI, which we cover separately.

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