The Financial Conduct Authority (FCA) is set to warn bosses in the finance sector that they must increase their spend on measures to tackle scammers using Artificial Intelligence (AI) to commit fraud.

As reported by the Guardian, FCA chief executive Nikhil Rathi will state in a speech to be given in London today that “cyber fraud, cyber-attacks and identity fraud are increasing in scale and sophistication and effectiveness” as AI technologies become more widespread.

Rathi will reportedly also cite concerns over the speed of advances being made as the world scrambles to implement measures to control AI and ensure its responsible development.

The FCA chief exec will close his speech by concluding that the use of AI can both “benefit markets and can also cause imbalances and risks” that affect the integrity, price discovery and transparency and fairness of markets if “unleashed unfettered”.

The year so far has seen a rapid acceleration of AI technologies infusing multiple sectors, leading the UK government to enact a taskforce to develop AI for public services.

Speaking at Tech Week in London, prime minister Rishi Sunak recently expressed his hopes for the UK to become an AI vanguard. Labour counterpart Keir Starmer, meanwhile, also spoke at the event questioning whether advances in AI could lead to greater social inequality.

The Elon Musk-funded Future of Life Institute recently called for a six-month pause on training AI systems in an open letter signed by prominent figures including Apple co-founder Steve Wozniak and Emma Bluemke, Centre for the Governance of AI, PhD Engineering, University of Oxford.

United Nations secretary general Antonio Guterres recently expressed support for a global AI watchdog while EU tech chief Margrethe Vestager recently called for the AI industry to adopt a voluntary code of conduct whilst regulation is being developed.

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