UK banks to experiment with Nvidia AI in ‘supercharged sandbox’ scheme
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UK banks to experiment with Nvidia AI in ‘supercharged sandbox’ scheme
The Financial Conduct Authority is launching a ‘supercharged sandbox’ that will give successful applicants the chance to experiment safely with cutting-edge AI. The regulator is not dictating what those experiments might be, but some firms have previously suggested that AI could be used to identify and intercept authorised push payment fraud. The move chimes with Keir Starmer’s calls in January for a huge rollout of AI, including “sector champions” that could drive Britain’s role in developing and deploying the technology. The Silicon Valley company, founded in 1993, has been the engine of the AI market boom, with hype around the technology propelling its valuation to more than $3tn (£2.2tn)
The Financial Conduct Authority (FCA) said it was launching a “supercharged sandbox” that would give successful applicants the chance to experiment safely with cutting-edge AI under the watchdog’s supervision, allowing them to use Nvidia’s accelerated computing products.
The regulator is not dictating what those experiments might be, but some firms have previously suggested that AI could be used to identify and intercept authorised push payment fraud, in which victims are tricked into sending money to criminals’ bank accounts, or help identify stock market manipulation.
The FCA’s chief data, intelligence and information officer, Jessica Rusu, said: “This collaboration will help those that want to test AI ideas but who lack the capabilities to do so. We’ll help firms harness AI to benefit our markets and consumers, while supporting economic growth.”
The AI sandbox programme is open to applications, with plans to begin operating in October, nearly a year after the chancellor, Rachel Reeves, ordered the FCA to encourage more risk-taking across the City to help spur growth and competitiveness.
The government has been heaping pressure on UK watchdogs to do more to support the economy, amid accusations that red tape has been a barrier to business and inward investment.
The FCA’s focus on AI comes despite fears that the technology could lead to job losses across a swathe of sectors, including financial services, unless the government implements proper controls.
The move chimes, however, with Keir Starmer’s calls in January for a huge rollout of AI, including “sector champions” that could drive Britain’s role in developing and deploying AI.
The collaboration with Nvidia will be hailed by enthusiasts of the new technology. The Silicon Valley company, founded in 1993, has been the engine of the AI market boom, with hype around the technology propelling the firm’s valuation to more than $3tn (£2.2tn).
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Nvidia’s head of financial technology for Europe, the Middle East and Africa, Jochen Papenbrock, said: “AI is fundamentally reshaping the financial sector by automating processes, enhancing data analysis, and improving decision-making, which leads to greater efficiency, accuracy, and risk management across a wide range of financial activities.
“The FCA’s supercharged sandbox provides firms with a secure environment to explore AI innovations using Nvidia’s full-stack accelerated computing platform, supporting industry-wide growth and efficiency.”