The Bank of England (BoE) intends to prioritise AI, DLT, and quantum computing as the three “cross-cutting technologies” with the most potential for “transformative outcomes”.

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The central bank has set out its plans for adopting new technology in a report that also expands on technological innovation in the economy; the interaction of new technology; and its approach to championing responsible innovation. 

According to the bank, the UK’s financial services sector has a key role to play in both adopting the technology and also enabling other sectors in the economy to benefit from the technology. 

“Many firms are already using AI, piloting DLT applications, and exploring opportunities to use quantum computing,” stated Sarah Breeden, deputy governor financial stability at the BoE. 

“Beyond acting as an early adopter of these technologies, the financial services sector has an important role to play in enabling other sectors to adopt them too. If adopted widely and responsibly, these technologies could boost the UK’s productivity and overall economic growth.”

Breeden added that the BoE recognises that its role is not to slow innovation but to shape it, hence its policy of “responsible innovation”.

“The scale of change driven by technological innovation will impact all the work the Bank of England does – from setting interest rates, to maintaining financial stability, to operating the UK’s core payments infrastructure, among others,” states the report.

“We cannot know for certain which technological innovations will flourish and when but, as the UK’s central bank, we need to understand how these technological changes affect our remit, while also enabling the financial services sector to adopt these technologies safely.

“By ‘responsible innovation’ we do not mean ‘riskless’ innovation. Rather, we mean to emphasise that we cannot unlock the true benefits of innovation without understanding and managing the potential risks that innovation can pose.”