These situations require robust governance at board level. 22  IDC: Wordlwide Semiannual AI Systems Spending Guide (March 2019). See: https://www.bis.org/review/r180727a.pdf and Finastra, FTI Consuting Survey 2019. 24 McKinsey & Company research for the Future of Finance review. 23  8  All speeches are available online at www.bankofengland.co.uk/news/speeches  8  To ensure that the benefits of cloud computing are realised and the associated risks are well managed, the PRA will issue a Supervisory Statement in the autumn that sets out its supervisory approach. The Bank, together with the FCA, will also establish a forum to discuss the results of a survey that it has conducted on AI use in finance and determine an appropriate supervisory approach. The Bank’s management and analysis of data is critical to our effectiveness as regulators and to the City’s competitiveness. The Bank now receives 65 billion data points each year of firm-related information. To put that into context, reviewing it all would be the equivalent of each supervisor reading the complete works of Shakespeare twice a week, every week of the year. For firms, while the Cloud and AI have reduced the costs of storage and analysis, producing regulatory submissions is still labour intensive and costs the industry an estimated £ billion per year.25 This is the new frontier of regulatory efficiency and effectiveness. The PRA is exploring how new technologies could streamline firms’ compliance and regulatory processes while improving our ability to analyse relevant data.
12  All speeches are available online at www.bankofengland.co.uk/news/speeches  12  Consumers should have greater choice, better services and equal access to finance. Small and medium sized businesses should have access to new credit to grow. Banks themselves should be more productive and supervision more efficient. And the financial system should seize the opportunities and manage the risks associated with the UK’s transition to a carbon-neutral economy. The success of the new finance will be assured if we remember some old lessons, namely: -  That similar activities should be regulated consistently;  -  That markets don’t always clear, liquidity is state contingent and the riskiness of an asset depends in part on the entity that holds it;  -  That individual responsibility is essential for collective welfare;  -  That ending Too big to Fail is a moral and a financial imperative; and  -  That when it comes to financial stability, success is an orphan. Memories fade, complacency sets in and the virtues of prudence are soon forgotten. Most fundamentally, we must always remember that finance is not an end in itself. It is a servant of the real economy, of the households and entrepreneurs that make this country great. They are demanding a more sustainable, inclusive and prosperous future. The ultimate test of the New Finance is whether it helps deliver just that. 13  All speeches are available online at www.bankofengland.co.uk/news/speeches  13