The Treasury wants regulators to update their approach to AI with the aim of increasing transparency around how they plan to implement the AI Regulation White Paper proposals.

In the letter from Bim Afolami MP, Economic Secretary to the Treasury and City Minister, he asks for a “pro-innovation approach to AI regulation.”

Mr Afolami has asked the FCA and other key regulators to publish an update by 30 April outlining their strategic approach to AI and the steps they are taking in line with the expectations in the White Paper. 

He wants to know in particular how significantly AI could impact on the sectors, markets, and/or firms they regulate.

He also wants to know about FCA AI plans and activities over the coming 12 months, including steps to address any “capability gaps” and any risk assessment work they plan to undertake, planned stakeholder engagement activity and international engagement.

Last year, the government published the AI Regulation White Paper outlining its framework for governing AI in order to drive “safe, responsible innovation.”

The White Paper proposes allowing AI to be regulated in a “targeted, context-specific and coherent manner across the economy.”

Mr Afolami said in his letter: “The framework proposed is non-statutory - although as signalled in the White Paper, it may become necessary to introduce a statutory duty for regulators to have due regard to the principles at a later point.

“One of the key areas of feedback so far, however, was the need to ensure that regulators were considering the risks and opportunities of AI within their remits.

“As the use of AI becomes more widespread across the economy, transparency regarding the steps regulators are taking to understand both the opportunities and the risks this creates, and the actions they are taking in response, would be valuable.”

He added: “We are determined to unlock the full benefits of AI by establishing a regulatory approach which drives safe, responsible innovation. This will require a sustained effort from both the UK government and the independent regulators at the front line of implementing the framework.”