BoE publishes approach to responsible innovation in AI, DLT and quantum computing

The Bank of England (BoE) has published its approach to supporting responsible innovation across artificial intelligence (AI), distributed ledger technology (DLT) and quantum computing. Recognising these as potentially transformative technologies, the BoE emphasises its role in enabling safe adoption while safeguarding monetary and financial stability. The BoE acknowledges that these technologies will significantly impact the work it does, from setting interest rates, to maintaining financial stability, to operating the UK's core payments infrastructure. It also highlights its responsibility to understand and manage the risks and opportunities these innovations present.

To foster a resilient and innovation-friendly environment, the BoE sets out the following three key regulatory levers.

• Using hard infrastructure – with the most notable example being the BoE's operation of the Real-Time Gross Settlement (RTGS) service.
• Using soft infrastructure – such as rules, regulations, standards and technology-specific guidance.
• Using its convening and coordinating role – including through its AI Consortium, aimed at deepening understanding of emerging technologies.

In practice, the BoE states these levers are applied through four core actions: engaging with innovators (including via experimentation); adapting the execution of its core functions; identifying and removing undue barriers to innovation; and collaborating with domestic and international authorities. The publication also reflects on what the BoE has achieved so far and its future priorities to enhance internal capabilities, shape policy framework and support cross-sector collaboration to ensure innovation contributes to a resilient and productive financial system.

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