The Guernsey Financial Services Commission has stated that it will encourage the adoption AI tools and new technological developments, such as machine learning, large language models, and agentic and generative AI, all of which can enhance operational efficiency and ease administrative burdens.
The regulator said that it recognised the role that AI could play in ‘transforming the way financial services are administered, managed and delivered at all levels’.
It has advised local firms that innovations can be implemented within the existing regulatory framework without the need for specific approval or discussion with the commission.
It has not put forward any specific rules or guidance on the use of AI, but said it was happy to discuss options.
‘Firms should treat the adoption of any AI tools as it would do so for any other technical or strategic project,’ it said.
At the end of last year the commission held a digital forum to discuss the role of AI in the local industry, with roundtable discussions for industry and service providers from outside of financial services.
The commission said it wanted to understand more about how firms are approaching AI, identify barriers to adoption, and to encourage dialogue and knowledge-sharing across the industry.
The commission’s recent embrace of technology in various ways is in stark contrast to the policy position it took back in 2014, when it warned of ‘significant risks’ with virtual currencies and said it would adopt a cautious approach, and may well refuse applications to register virtual currency businesses.
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