Despite rising ML utilisation, almost half of the 168 organisations surveyed said Prudential Regulation Authority and/or FCA regulations were constraining ML deployment, with 25 per cent saying this is due to a lack of clarity within existing regulation, according to new research by the Bank of England and the Financial Conduct Authority (FCA).

The survey also found that three quarters of UK financial services firms report using or developing Machine Learning (ML) applications – a rise of five per cent compared to 2019.

More than three quarters - 79 per cent - reported that ML applications were in the latter stages of development and deployed across a considerable share of business areas or critical to some business areas.

As in the first survey in 2019, customer engagement and risk management were found to be the areas with the most applications, accounting for 28 per cent and 23 per cent of all reported applications respectively.

More than three quarters of respondents said their ML applications had data governance frameworks in place, with model risk management and operational risk frameworks also commonplace at 67 per cent.

More than three quarters of respondents develop and implement ML applications internally at their organisation – marking a rise from 76 per cent in the 2019.

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