UK FCA will work with Nvidia to get banks to experiment with AI

London – UK Financial Services Watchdog announced a new US partnership on Monday chipmaker nvidia To ensure that banks are able to experiment with artificial intelligence safely.

The Financial Conduct Authority said it will launch a so-called supercharged sandbox to help businesses access better data, technical expertise and regulatory support to speed up innovation.

Starting in October, the UK financial services agency will be allowed to experiment with AI using NVIDIA’s accelerated computing and AI enterprise software products, Press Lireper said.

The initiative is designed for companies in the “discovery and experimental phase” using AI, FCA noted, adding that there is another live testing service for businesses in AI development.

“This collaboration will help those who want to test AI ideas but don’t have the ability to do so,” said Jessica Rusu, FCA’s key data, intelligence and information director, in a statement. “We will help businesses leverage AI to benefit markets and consumers while supporting economic growth.”

FCA’s new sandbox addresses a critical issue for banks facing the challenge of shipping advanced new AI tools to their customers amid concerns about privacy and fraud risks.

Large language models such as Openai and Google send data back to facilities overseas. Privacy regulators have raised alarms about how this information is stored and processed. Meanwhile, there have been several instances of malicious actors who use generative AI to scam people.

Nvidia is behind the Graphic Processing Unit (GPU) used to train and run powerful AI models. The company’s CEO, Jensen Fan, will give a keynote speech at the Tech Conference in London on Monday morning.

Last year, HSBC’s generative AI lead, Edward Achitner, told the London Technology Council that he was looking at “many success theatres” in finance when it comes to artificial intelligence. It suggests that financial services companies are promoting advances in AI without any concrete product innovations.

He added that banks like HSBC have used AI for many years, but new generation AI tools like Openai’s ChatGPT come with their own compliance risks.