Artificial intelligence is the business topic of the times. Rather than casting itself in the role of a regulator of the technology, with specific rules for these operations, the Financial Conduct Authority is adopting what it calls a ‘technology-agnostic’ approach. “It is difficult to see how one could provide clearer broad standards of regulation of AI,” says Dr Andrew Henderson, partner and co-leader of the European Financial Regulatory practice at law firm Goodwin. Firms need to establish and communicate a policy on AI use throughout their organization, as well as educate their staff about the risks and opportunities. Henderson says, “Compliance needs to look at both general AI use and specific applications designed by their firms or bought in.” Certain questions need to be asked in connection with the use of such applications, he continues. For instance: “Do the people using the technology understand exactly how it is working?" Read the Compliance Monitor for more.