Speaking at this years’ City and Financial Global AI Regulation Summit, Rusu started her speech referring to the already profound changes present in financial services, as we move towards a cashless society. 

She holds a coin in her hand as an analogy for the two sides to AI in the sector. On one side is transformative innovation, enhanced efficiency and accessibility, and increased revenue. While on the other side are the risk, safety concerns, the need for more digital infrastructure and ethical considerations. 

“Right now the coin is currently spinning in mid-air, and we can influence the outcome. This is a pivotal moment,” she said. 

According to Rusu, AI is just the beginning of looking at the broader issues in the digital sphere. She identified a few other key areas financial services must look at to decide “how the coin falls.”

The first is building a resilient digital infrastructure , she said. Since AI deployments run on the cloud, there is an increased risk by third-party tech providers. According to her, the FCA is already looking to address the systemic risk this poses in UK financial services. 

“We are currently reviewing responses to the CTP (critical third parties) Discussion Paper. We aim to consult on potential rules and guidance relating to providers of critical services under the Financial and Services Markets Act later this year,” she said. 

Rusu also emphasised the need for firms to prioritise operational resilience alongside complying with existing regulations. “Firms are still required to meet their commitments no matter how they choose to deliver their services.”

According to her, resilience and safety are going to be key focus areas for the UK Government AI Safety Summit taking place in November. 

Another key area during this time where the coin is still spinning is addressing the rising threat of AI scams. Everything from deepfake tech to biometric theft are rising, and organisations must be vigilant to the sophisticated risks AI-powered cyber-attacks present.

“Imagine you get a call from your child telling you they’re in some kind of trouble and need money – and it really does sound like them. Would you help? Are you flipping the coin on trust with your loved ones?” Rusu asks the audience. 

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The final consideration Rusu stressed was the importance of ethical data usage for responsible AI adoption. 

“One of the defining features of AI is its ability to process large volumes of data, and to detect and exploit patterns in those data,” she said.

“Just because we have the ability to process the data, should we? And when is the hyper-personalisation of models helpful versus hurtful?”

In facing all of these issues, Rusu maintains that beneficial regulation would lead to beneficial innovation. Alongside developing AI to improve customer service and create more tailored offerings in the financial services sector, maintaining standards set by regulation will help unlock these benefits.

“It falls on all of us, as innovators, leaders and regulators of our financial systems, to ensure that we act as stewards to shape the role of AI in the financial services industry,” continued Rusu. 

“It may be that the proverbial coin that is AI is still in the air, with the outcome hanging in the balance. We can, however, determine the fate of this digital coin toss through collaboration, our commitment to beneficial innovation and ensuring the right guardrails are in place.”