
In December 2024, the FCA published a research note on bias in artificial intelligence. CMS' publication is part of a series from the FCA exploring how AI intersects with financial services, aiming to stimulate discussion on issues involved in building and implementing AI systems.
The research note focusses on bias in supervised machine learning models, which predict outcomes (such as the future risk of someone making an insurance claim) based on past training data.
The FCA focusses on how unjustified differences in predictions or outcomes might arise for three groups of customers with particular characteristics, including protected characteristics, vulnerability, and other demographic characteristics (such as region, occupation or income).
Data bias was found to be one of the top five perceived current risks of AI in the BoE and FCA’s recent survey on AI.
CMS' discussion of what constitutes and what contributes to bias is well worth reading, whilst the report's key takeaways from the FCA's research note are essential knowledge for any NED looking to stay up-to-date with AI expertise.
Learn More:
Read the full report here.
About CMS:
CMS is a forward-thinking global organisation of independent law firms, boasting over 80 offices in more than 40 countries, and a network of 5,800 lawyers. Combining deep local market knowledge with a broad global perspective, CMS offers dynamic and agile legal solutions to help clients navigate the future with confidence. The firm's focus on social impact, diversity, and sustainability underscores their significance in conversations on governance and future-facing leadership.