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

The Financial Conduct Authority wants firms to include significant AI failures and near-misses in their incident reports as financial services adopt more autonomous systems. It says clear accountability and reporting could help regulators learn from problems early and reduce the risk of consumer harm, cyber vulnerabilities and operational failures.

FCA official Jessica Rusu set out the position at a Bloomberg policy event on Monday. The financial services sector contributed £223.6 billion to the UK economy in 2025, equal to 8 per cent of national output and the fourth-highest share among OECD countries. The government is considering stronger measures to address AI-related cyber and loss-of-control risks, while a parliamentary committee has called for AI stress tests and clear responsibility for harmful outcomes.