Critique of the UK’s pro-innovation approach to AI regulation and implications for financial regulation innovation

Recently, artificial intelligence (AI) is widely recognised as a pivotal technological advancement with the capacity to profoundly reshape societal dynamics. It is celebrated for its potential to enhance public services, create high-quality employment opportunities, and power the future. However, there remains a notable opacity regarding the potential threats it poses to life, security, and related domains, thus requiring a pro-active approach to regulation. To address this gap, the UK Government has released an AI white paper outlining its pro-innovation approach to regulating AI. While this white paper symbolises the contributions and endeavours aimed at providing innovative and dynamic solutions to tackle the significant challenge posed by AI, it is important to acknowledge that there are still certain limitations which the white paper may refine in subsequent iterations.