Over the past year in particular, there has been increasing awareness of artificial intelligence (AI), due to its rapidly increasing capabilities and potential to impact upon the world as we know it.

ChatGPT is one of the most commonly talked about AI tools, this is due to the fact that the basic model is now accessible to the general public for free via the internet and can therefore be used by anyone. The language model can answer questions and assist you with tasks, for example, things such as writing blogs, essays, emails and code. A paid-for subscription version called ChatGPT Plus launched in 2023 and has much more extensive capabilities than the basic one. 

Recently, the FCA and PRA released the responses from the Discussion paper in their Feedback Statement 23/6: Artificial Intelligence and Machine Learning which considered the following:

• the potential benefits and risks related to the use of AI in UK financial services
• how the current regulatory framework applies to AI
• whether additional clarification of existing regulations may be helpful
• how policy can best support further safe and responsible AI adoption

If you buy compliance services from Paradigm you can log in to your account to read what the main points from this Feedback Statement were and Paradigm’s views on this.

What is clear is that AI also comes with some risks that you need to be aware of, such as ethical, legal, social, and technical challenges. For example, AI may pose threats to privacy, security, accountability, transparency and fairness, amongst other things. Therefore, it is important to understand the benefits and limitations of AI, and to adopt responsible and ethical practices when using AI in your business.

Why not take a listen to a presentation recently given by Justine Randall, Chief Commercial Officer at Tatton Investment Management on one of our webinars. The presentation is titled ‘Artificial Intelligence - Friend or Foe?’.