# PRA AI/ML model-risk roundtable (Nov 2025): The PRA holds model risk management roundtable on artificial intelligence and machine learning technologies

Source: https://www.bankingnewsai.com/ai-regulation/documents/pra-mrm-roundtable-ai-ml-2025
Last updated: Aug 26, 2026

On 24 November 2025 the PRA published the slides from two Chief Risk Officer roundtables held on 20 and 22 October 2025 with 21 PRA-regulated firms on applying the SS1/23 model risk management principles to AI and machine learning. The PRA set out its thinking on risk appetite for AI models, model tiering, explainability and interpretability, data and overfitting, independent validation, and ongoing monitoring — the closest thing to AI-specific model-risk guidance the PRA has issued.

## At a glance

| Field | Value |
| --- | --- |
| Authority | [UK (BoE / PRA / FCA)](https://www.bankingnewsai.com/ai-regulation/uk) |
| Type | Guidance |
| Status | Final |
| Published | Nov 24, 2025 |
| Applies to | PRA-regulated banks applying SS1/23, particularly those with internal-model approvals |
| Official text | https://www.bankofengland.co.uk/prudential-regulation/publication/2025/november/pra-holds-model-risk-management-roundtable-on-ai |

## Key points

- Two CRO roundtables, 20 and 22 October 2025, 21 firms; presentation slides published on the PRA site.
- Frames SS1/23 as the supervisory expectation for AI/ML models, not a separate regime.
- Topics: risk appetite, model tiering and materiality, explainability and interpretability, data quality and overfitting, independent validation, ongoing model monitoring.
- Cited by the BoE/PRA in both 1 April 2026 letters as evidence of proactive AI supervision.
- The PRA said it intends to build further on SS1/23 for AI in 2026 using these supervisory insights.

## What changed for banks

It signals how PRA supervisors will test AI models against SS1/23 in the 2026 supervisory cycle, where AI adoption is a named priority. Banks should expect questions on tiering of generative and vendor models, validation of non-deterministic outputs, and monitoring for drift.

## Use cases it governs

- [Model risk management](https://www.bankingnewsai.com/ai-regulation/by-use-case#model-risk)
- [Generative & agentic AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#generative-agentic-ai)
- [Credit scoring & underwriting](https://www.bankingnewsai.com/ai-regulation/by-use-case#credit-underwriting)
- [Third-party & vendor AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#third-party-vendors)

## FAQ

### Has the PRA issued guidance on AI under SS1/23?

Not formal guidance, but in November 2025 it published roundtable slides setting out its views on risk appetite, tiering, explainability, data, validation and monitoring for AI/ML models under SS1/23, and has said it will build on SS1/23 in 2026.

## Compare

- [PRA SS1/23 vs SR 26-2](https://www.bankingnewsai.com/ai-regulation/compare/pra-ss1-23-vs-sr-26-2): PRA SS1/23 vs SR 26-2: UK and US Model Risk Compared

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- [FCA multi-firm review: Frontier AI and cyber resilience (Sep 2026)](https://www.bankingnewsai.com/ai-regulation/documents/fca-frontier-ai-cyber-resilience-2026) — Frontier AI and Cyber Resilience (Sep 2, 2026)
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- [BoE/PRA plan for safe AI innovation (Apr 2026)](https://www.bankingnewsai.com/ai-regulation/documents/boe-pra-safe-ai-innovation-plan-letter-2026) — Letter from Sarah Breeden and Sam Woods to the Chancellor and Secretaries of State on enabling safe AI innovation (Apr 1, 2026)
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Last reviewed Aug 26, 2026. Cite the official text (https://www.bankofengland.co.uk/prudential-regulation/publication/2025/november/pra-holds-model-risk-management-roundtable-on-ai) for the rule and this page for the summary and dates.

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