The Chartered Insurance Institute has advised the Treasury Select Committee that institutions and individuals be held accountable for decisions made using artificial intelligence, and advocates a ‘skills strategy’ to support the use of AI within financial services.

The membership body says professionals should “always be prepared to take accountability for the outcomes created by AI, either through design or monitoring”, adding that all professionals should be educated on the potential harm that can come from mismanaging AI.

In its submission to the TSC, the CII recommends that institutions be held responsible for decisions made by the algorithms that they use, “even if it is not feasible to explain in detail how the algorithms produce their results”.

This accountability should be backed up with validation and testing, especially for discriminatory harm, and institutions should make the results of these tests public, it says.

Dr Matthew Connell (pictured), director of policy and public affairs at the CII, said: “While AI has been employed within insurance for many years, it is important that we continuously assess how it can be optimised for both professionals and consumers. We welcome the opportunity to offer recommendations to the Treasury Select Committee and utilise the extensive consumer research carried out by the CII to inform this work on AI in financial services.”

The CII says that a “proportionate, regulatory approach” to the use of AI in financial services would include implementation of a sector wide skills strategy, in which all employees of firms receive education on the potential and risks of AI, in order to strike the right balance between optimising its use and protecting consumers. It says that this will allow healthy debate within firms and the wider profession about the most effective use of AI, increasing trust over the long-term.

The CII has developed a range of courses and materials for professionals to build their understanding and use of AI, including an introductory course to data science and AI and CPD materials around the opportunities and risks associated with AI.


Readers may access the Chartered Insurance Institute's full response to the Treasury Select Committee call for input on AI and financial services here: https://ciigroup-dxp.euwest01.umbraco.io/media/2lohvavc/treasury-select-committee-ai-2025.pdf

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