Burges Salmon reports on a guide published by the Cross-Market Operational Resilience Group (CMORG) to help UK financial services firms manage risks associated with generative AI. The guide, prepared by senior leaders from the Bank of England, the Financial Conduct Authority and private-sector institutions, provides a practical framework for adopting gen‑AI technologies responsibly without compromising operational resilience or consumer protection. It highlights seven key risk areas including third‑party and vendor issues, legal and intellectual property challenges, data privacy concerns and the potential for model failures or hallucinations.

The article notes that the CMORG guide also addresses risks linked to cybersecurity, ethics and governance, urging firms to conduct thorough risk assessments and establish clear accountability structures. It recommends robust human oversight to prevent AI errors and ensure compliance with existing regulatory obligations. By providing industry‑wide best practices, UK regulators and industry leaders hope to foster innovation while maintaining financial stability and protecting consumers.