UK exercise to test financial impact of AI

Around 60 banks, insurance firms and other financial businesses will take part in the six-week exercise exercise, which is scheduled to begin on 13 October.

The exercise, which will look at a number of factors including how firms could cope with a greatly reduced workforce, was announced by FSA chairman Callum McCarthy.

Mr McCarthy said that government departments, health agencies and other experts were also involved in the simulation.

“I am confident that we will all learn much from this test – as we need to do,” he said.

“It is an area we would neglect at our peril, and we are determined not to allow this to happen.”

The announcement of the avian flu exercise came as Mr McCarthy said the UK’s financial services industry remained in good shape, but should never be complacent about possible economic downturns over the horizon.