The Bank of England (BoE) is set to prioritize Artificial Intelligence (AI), Distributed Ledger Technology (DLT), and quantum computing in its tech strategy, recognizing their immense potential for 'transformative outcomes'. This strategic move is outlined in a comprehensive report that delves into the economic impact of technological innovation, the interplay between new technologies, and the BoE's commitment to fostering responsible innovation. The central bank emphasizes the pivotal role the UK's financial services sector plays in both embracing these technologies and facilitating their adoption across other sectors, thereby boosting productivity and economic growth. According to Sarah Breeden, Deputy Governor of Financial Stability at the BoE, many firms are already harnessing AI, piloting DLT applications, and exploring quantum computing opportunities. However, the sector's influence extends beyond being early adopters; it's crucial in enabling other sectors to embrace these technologies responsibly. Breeden clarifies that the BoE's 'responsible innovation' policy isn't about risk-free innovation but rather about understanding and managing the risks associated with these advancements. The report underscores the far-reaching impact of technological innovation on the BoE's operations, from setting interest rates to maintaining financial stability and managing the UK's core payments infrastructure. While the exact technological innovations that will thrive and when remains uncertain, the BoE is committed to understanding their implications and ensuring the safe adoption of these technologies by the financial services sector. This approach is designed to unlock the true benefits of innovation while mitigating potential risks, inviting discussion and engagement from the community on the delicate balance between innovation and risk management.
