UK finance watchdog wants firms to report AI failures and close calls

The UK Financial Conduct Authority has issued new guidance requiring financial firms to proactively monitor and report malfunctions or near-misses involving artificial intelligence systems. By mandating clear accountability for autonomous tools, the regulator aims to mitigate operational risks and prevent potential market disruptions as these technologies become integrated into core financial services. This move establishes a formal framework for oversight, ensuring that companies maintain transparency regarding the automated processes that now influence consumer outcomes and financial stability.