The UK financial services industry has the opportunity to innovate with generative AI and boost its resilience in the face of increasing cyber threats. This will allow them to better serve their customers, increase growth, and contribute to the country being an AI global leader.
According to , the Citi of London Corporation, the financial services industry is vital to the UK’s growth. It represents approximately 12% of its economic output, and provides about 2.5 million jobs. It is important that the financial services industry continues to grow. It is also vital that the UK strengthens its cybersecurity capabilities.
AI is also expanding, creating new opportunities. As part of the digital transformation, companies in the financial services industry (FSI), from risk and compliance, to marketing and sales and operations, are increasingly implementing AI. This transition also implies an explosion of data that must be considered and requires enhanced data protection.
Likewise, consumers and customers are becoming more aware and excited about AI’s potential to streamline and modernise core banking and payments. Cybercriminals use AI to launch sophisticated attacks, such as phishing campaign to exploit the trust and extort funds from individuals and organisations.
It’s no secret that FSI organizations are currently operating in a difficult environment, mainly because of macro factors. They have to deal with regulatory pressures, an uncertain economy and a geopolitical environment that contributes to the rise in cyberattacks. They are also faced with a shortage in cyber experts that can adequately prepare them for cybersecurity threats.
There is a general concern about the impact of cyberattacks on UK FSI companies and their growth. Cyberattacks cost the UK around PS87 billion per year.
A stronger AI-based cybersecurity programme at UK companies and in particular FSI companies could save billions of pounds for the UK economy, and catapult it to the position of AI leadership on the global stage. It is therefore crucial that FSI companies invest in technology to remain competitive and prepare for a future of uncertainty.
Research shows that cybersecurity is a top priority for FSI firms. FSI decision-makers also believe that the benefits of AI in protecting against cyber threats outweigh their risks. More than 60% of FSI executives surveyed believe that AI can be used to improve cybersecurity and reduce cyber risks. FSI companies are ready to use AI tools to gain a strategic advantage and strengthen cybersecurity.
Unlocking AI potential
AI has many benefits for FSI organizations, and it can be used in a variety of ways to strengthen their cybersecurity programmes.
AI can be used as an assistant in order to enhance cybersecurity expertise within teams and fill any skills gaps that are not being addressed due to a labour shortage. AI cannot replace cybersecurity experts but it can augment their capabilities.
AI can also be used to plan and run tabletop exercises in order to reduce the likelihood or impact of an attack. AI can help plan and anticipate attacks and create protocols that are well-communicated and clear.
AI can assist in preventing the spread of threats and identifying them early, even in the unfortunate event of an attack. They can automate certain tasks, such as incident response strategies and recovery strategies. AI can isolate virus-affected assets quickly to prevent the spread of a virus. Tools that use generative AI can simplify the reporting required by security professionals following an event, and share the results with the rest the organisation.
Now is the time to integrate AI into security operations in order to benefit from these AI capabilities. They must adopt best practice that will aid in the proactive planning, implementation and use of AI-based cybersecurity system.
Ethics is a fundamental element in AI-based systems. Responsible AI must be built on a foundation based on security, risk management and trust. It is essential that AI-based security systems respect the privacy and confidentiality of customers, consumers employees, and other third parties. These systems need to be safe and reliable.
FSI firms must also be clear about how AI-related risks and controls map across the three lines of defense within an organization, namely, business management, internal audit, and risk functions.
AI-enabled technology must be carefully adopted throughout the organisation to ensure that this proactive AI implementation is successful. In fact, FSI companies should pay attention to the integration of new AI solutions with existing processes and system. Flexibility and agility is key.
AI-based systems can help FSI organisations enhance their cybersecurity capabilities by following these best practices. They can increase their resilience and ensure the future security of their businesses. They can also increase the overall level of cyber resilience in the country, which is the foundation for future economic growth.