BoE and PRA Set AI Approach for UK Finance
Summary
A&O Shearman summarized the BoE and PRA joint letter outlining their approach to enabling safe and responsible AI adoption in UK financial services. The letter responds to a government request and sets out planned work for 2026 including AI as a supervisory priority, a biennial AI adoption survey, and consortium reporting on generative and agentic AI. The PRA will update annually on how its approach enables AI-driven innovation and growth.
What changed
The BoE and PRA issued a joint letter to the chancellor and relevant secretaries of state setting out their approach to enabling safe and responsible AI adoption in UK financial services. Planned work for 2026 includes embedding AI as a supervisory priority with increased focus on AI-related risks through supervisory dialogue, conducting the next edition of the biennial AI adoption survey across regulated firms, and publishing a report from the AI consortium on generative AI and agentic AI trends. The authorities will also coordinate with domestic and international regulators including G20, G7 cyber expert group, and the DRCF.
UK-regulated financial institutions should anticipate increased supervisory attention on AI risk management practices and prepare for the upcoming AI adoption survey. Firms should review their AI governance frameworks and ensure readiness for supervisory dialogue on AI-related risks. The annual business plan and annual report updates from the PRA will provide ongoing guidance on how the regulatory approach supports AI-driven innovation and growth.
What to do next
- Monitor BoE and PRA for 2026 AI survey details
- Track AI consortium report on generative and agentic AI
- Review supervisory dialogue expectations for AI-related risks
Archived snapshot
Apr 10, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
April 9, 2026
BoE and PRA Response On AI In Financial Services
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The Bank of England (BoE) has published a joint letter from the BoE and the UK Prudential Regulation Authority (PRA) to the chancellor of the exchequer and relevant secretaries of state, setting out their approach to enabling the safe and responsible adoption of AI in the UK financial sector. The letter responds to a request of 28 January to publish a plan explaining how the authorities will help enable safe AI driven innovation as well as to report annually on how their supervisory and regulatory approach supports AI driven innovation and growth.
Planned work for this year includes:
- Embedding AI as a supervisory priority for 2026, with increased focus on AI‑related risks and practices through supervisory dialogue with firms.
- Conducting the next edition of the biennial survey of AI adoption across Bank‑ and FCA‑regulated firms.
- A report from the AI consortium on its work, including on generative AI and emerging trends such as the rise of agentic AI.
- Ongoing coordination with domestic and international regulators and standard‑setting bodies (such as the G20, G7 cyber expert group and DRCF) on AI risk management and good practice.
- Expanding the BoE's internal use of AI to support and enhance its own capabilities. Going forward, the PRA's annual business plan and annual report will update on how its approach has enabled AI driven innovation and growth, referring to wider BoE initiatives where appropriate. Separately, the DRCF published a paper on agentic AI.
[View source.]
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