New Zealand’s Financial Markets Authority will hold a roundtable to explore how artificial intelligence is used in the financial services industry and how insurers and lenders are managing risks.

An FMA survey found “commitment to AI is strong and increasing”, with planned expansion of its use in customer service, risk management and fraud detection. 

“However, there is a cautious approach to generative AI, with a strong emphasis on responsible and controlled deployment,” the regulator said.

“Governance and accountability remain paramount, with firms investing in staff training and AI model validation to mitigate risks. The roundtable will serve as a platform for comprehensive dialogue with various perspectives.”

FMA says a collaborative approach will help it understand AI’s role in the sector and “shape a regulatory framework that balances innovation with the need for robust conduct oversight”.

The authority’s chief economist, Stuart Johnson, says understanding benefits and risks will inform oversight. 

“We are aware that AI adoption in financial services offers significant opportunities but also presents emerging risks,” he said. “Our research shares how institutions are beginning to navigate these challenges and the importance of robust governance structures.

“We are pleased that our discussions with stakeholders have revealed that firms are adopting AI with the goal of improving customer outcomes.”

The roundtable is on October 1. See the survey report here.