UK Treasury questions OpenAI, Microsoft, Meta over AI in financial services
The Treasury Committee has sent letters to six major technology firms, including OpenAI, Microsoft, Meta, and Amazon, seeking detailed information about the role they play in providing AI services to the UK financial sector.
The correspondence is part of the Committee’s inquiry into AI in financial services, ahead of forthcoming sessions with regulators and HM Treasury.
According to the letters, firms are asked to outline their AI strategies, preparations for system failures, interactions with the Bank of England and the Financial Conduct Authority (FCA), and views on proposed legislation such as the Artificial Intelligence (Regulation) Bill.
Amazon Web Services (AWS), Google Cloud, and Anthropic were also targeted. The Treasury expects responses by 1 October, which will be made public.
Dame Meg Hillier MP, chair of the Treasury Committee, highlighted the importance of scrutinising the sector in her correspondence.
The Committee, a select committee of the House of Commons, oversees HM Treasury and associated bodies, and its inquiries aim to hold ministers and industry accountable rather than act as government investigations.
Finance services bet big on AI
The letters come as the UK financial services industry accelerates AI adoption.
Recent data from Lloyds Bank’s financial institutions sentiment survey shows that more than half of senior leaders in banks, insurers, and asset managers plan to increase AI investment in the next 12 months.
Over 90 per cent now see AI as more opportunity than threat, up from 80 per cent in 2024, and reported productivity gains from AI jumped to 59 per cent from 32 per cent the previous year.
Banks and fintechs are already partnering with AI companies to enhance operations. While NatWest and OakNorth have teamed up with OpenAI, Lloyds has established a “centre for excellence and advanced analytics”.
Elsewhere, Zopa Bank plans to train 100,000 employees in AI by 2030.
Yet the rapid expansion raises concerns. Research by EY reveals that 26 per cent of financial services firms have minimal or no controls to ensure AI systems comply with regulation, and almost a quarter lack measures to prevent unauthorised access or corruption.
EY’s Preetham Peddanagari told Morning Wire: “Without robust oversight and governance frameworks, the sector risks leaving itself and its customers exposed to significant threats”.
Similarly, research by Juniper and Zopa Bank suggests AI could put around 27,000 banking jobs at risk, with up to 178 million work hours potentially cut over the next five years.
Regulatory innovation and oversight
In response, the FCA has taken steps to guide the safe use of AI.
Its AI Lab, launched in January 2025, aims to deepen understanding of AI risks and opportunities for consumers and markets.
This initiative is now being expanded in partnership with Nvidia through the ‘supercharged sandbox’, which offers computational resources, tooling, and regulatory guidance to smaller firms and startups experimenting with AI.
The sandbox is designed to allow firms to test early-stage proof-of-concept AI models in a controlled environment, embedding compliance and oversight into the innovation process.
The FCA has emphasised that it will not be introducing separate AI regulations at this stage, preferring to rely on existing frameworks.
The Treasury Committee letters ask firms whether they agree with this “technology-agnostic” approach, and how they would respond if designated as critical third parties under proposed UK regulation.
Firms are also invited to provide recommendations for future AI governance.
UK’s AI ambitions
The inquiry and growing investment in AI come against the backdrop of a government push to position the UK as a global AI leader.
Just this week, Donald Trump and Keir Starmer announced a landmark “Tech Prosperity Deal,” a pact aimed at cementing Britain’s position as a global leader in AI, quantum, and nuclear energy.
Hailed by Prime Minister Keir Starmer as a “generational step change”, the agreement is underpinned by £31bn in private investment from America’s largest tech firms.
Yet, Brent Hoberman, co-founder of lastminute.com, noted that while US tech investment is “a much-needed step change”, there is a risk the UK becomes “users, not makers” of AI.
He called for targeted support to ensure startups and scaleups benefit from large-scale tech deals, echoing concerns about national digital sovereignty.
As the Treasury Committee awaits responses from the tech giants, the inquiry will inform discussions with regulators and HM Treasury, shaping how AI is deployed across the UK’s financial system – balancing innovation, efficiency, and risk in an era of rapid technological transformation.