With generative AI, UK companies in the financial services sector have the opportunity to unlock new opportunities through innovation. This can help them boost resilience as cybersecurity threats increase. They can eventually better serve their customers, increase growth, and contribute to making the UK 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. FSI companies are increasingly implementing AI as part of their digital transformation from risk and compliance, to marketing and sales. This transition also implies an increase in data, which is something to be considered and requires enhanced data protection.
Customers and consumers are also becoming more aware and excited about AI’s potential to streamline and modernise core banking and payments. Even cybercriminals use AI to launch sophisticated attacks, such as phishing campaign to exploit the trust and extort cash from individuals and organisations.
It’s no secret FSI organisations operate in a challenging environment. This is 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.
According to research, 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 see AI as a way 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 minimise the likelihood of an attack or prevent it. 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 if an attack occurs. 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 the 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 of trust, security, and risk management. It is essential that AI-based security systems respect the privacy and confidentiality of customers, employees, consumers, and 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.
FSI organisations should also prioritize spending on buy-and build configurations and off the shelf solutions that provide a strong return on investment. To stay ahead of a rapidly evolving market, they must focus on open-sourcing research breakthroughs and capitalise on knowledge exchange.
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 country’s overall cyber resilience. This is the basis for economic growth in the future and affirming the UK as a global leader in AI and an economic power.