Financial institutions are highly regulated to protect both customers and the organizations themselves, but this often hinders their ability to adopt new technologies like artificial intelligence.
To address this, Nvidia is building a platform for the UK’s Financial Conduct Authority (FCA) called the Supercharged Sandbox, which will allow UK banks to experiment with AI without jeopardizing financial data.
Rolling out this October, the Sandbox will allow firms to use Nvidia’s cloud and AI enterprise software. The chipmaker will also provide technical expertise, more robust datasets, and regulatory support. However, the FCA noted that any innovations developed through the project would be deployed via a separate platform.
Privacy and Fraud Questions
In addition to compliance concerns, many UK financial services companies have been reluctant to engage with leading AI models—such as those operated by Google and Open AI—because they are based in the U.S. This raises questions about how the privacy of UK consumers will be protected, as well as how data would be stored and processed.
Additionally, concerns about fraud are heightened whenever new technologies are introduced in a financial institution. Fraud is a growing issues as cybercriminals have been able to experiment and innovate with AI much faster than most financial services companies—largely because they aren’t constrained by any regulatory framework.
A Sorely Needed Infrastructure
A solution like Supercharged Sandbox could be a key factor in helping financial institutions catch up in the tough fight against fraud. This solution should also allay concerns about reliance on overseas companies. Even though Nvidia is a U.S.-based chipmaker, the infrastructure for the solution will be built from the ground up in the UK.
According to the company’s CEO, Jensen Huang, this type of infrastructure is sorely needed in the UK—one reason why UK Prime Minister Keir Starmer has unveiled plans to invest £1 billion ($1.36 billion) to increase the UK’s computing power twentyfold.
Huang said this is necessary because “the UK is the largest AI ecosystem in the world without its own infrastructure.” Once such an ecosystem is in place, it would ideally facilitate more startups, investment, and research in the country.
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