PIMFA Response to FCA AI Live Testing Engagement Paper

PIMFA has submitted a response to the FCA's engagement paper on its proposed AI Live Testing regime. We welcome the regulator’s proactive and open approach to AI regulation. The proposal reflects a forward-thinking response to a rapidly evolving area. However, we continue to have concerns regarding the deployment of AI models more broadly. In our response, we call for greater clarity around key issues such as liability and accountability, vendor confidence, model bias, hallucinations, and broader AI-related risks. We also emphasise that innovation in financial services does not necessarily depend on AI