# FS2/23: Feedback Statement 2/23: Artificial Intelligence and Machine Learning

Source: https://www.bankingnewsai.com/ai-regulation/documents/uk-fs2-23-ai-and-machine-learning
Last updated: Aug 26, 2026

FS2/23, published on 26 October 2023, summarises the 54 responses to DP5/22 and records the industry consensus that a regulatory definition of AI would not be useful and that the UK should rely on principles-based, technology-agnostic regulation. Respondents asked for periodically updated 'live' guidance, more coordination between regulators, and clearer expectations on third-party models and data. The statement contains no policy proposals.

## At a glance

| Field | Value |
| --- | --- |
| Authority | [UK (BoE / PRA / FCA)](https://www.bankingnewsai.com/ai-regulation/uk) |
| Type | Report |
| Status | Final |
| Published | Oct 26, 2023 |
| Applies to | All PRA- and FCA-regulated firms (summary of consultation responses; no policy proposals) |
| Official text | https://www.bankofengland.co.uk/prudential-regulation/publication/2023/october/artificial-intelligence-and-machine-learning |

## Key points

- 54 responses; industry bodies were almost a quarter and banks a further fifth of respondents.
- A regulatory definition of AI was judged unhelpful; a risk-based or characteristics-based approach was preferred.
- Respondents wanted 'live' regulatory guidance and best-practice examples updated as capabilities change.
- The regulatory landscape for AI was seen as complex and fragmented, especially data regulation; more domestic and international alignment requested.
- Consumer outcomes, fairness and bias were identified as the key focus for regulation and supervision.
- Increasing use of third-party models and data was flagged as a concern needing more guidance.
- The AI Public-Private Forum was cited as a template for ongoing engagement — later realised as the 2025 AI Consortium.

## What changed for banks

FS2/23 turned DP5/22's question into the UK's settled answer: no AI rulebook, supervise through existing frameworks, monitor via surveys and industry forums. Every later UK document — SS1/23's technology-neutral model scope, the FCA's 2024 AI Update, the 2026 letters to government — cites this feedback as the basis for staying technology-agnostic.

## Use cases it governs

- [AI governance (general)](https://www.bankingnewsai.com/ai-regulation/by-use-case#governance-general)
- [Model risk management](https://www.bankingnewsai.com/ai-regulation/by-use-case#model-risk)
- [Third-party & vendor AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#third-party-vendors)
- [Fair lending & discrimination](https://www.bankingnewsai.com/ai-regulation/by-use-case#fair-lending)

## FAQ

### What did FS2/23 conclude about AI regulation in the UK?

That existing principles-based frameworks largely suffice, a regulatory definition of AI is not useful, and regulators should focus on consumer outcomes, third-party risk and coordination rather than new AI-specific rules.

### Did FS2/23 introduce any requirements?

No. It is a summary of responses and explicitly states it contains no policy proposals.

## Related documents

- [Bailey: Frontier AI and the Question of Governance (Sep 2026)](https://www.bankingnewsai.com/ai-regulation/documents/boe-bailey-frontier-ai-governance-2026) — Frontier AI and the Question of Governance — Governor Andrew Bailey (Sep 30, 2026)
- [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)
- [HM Treasury Financial Services AI Adoption Plan (Jul 2026)](https://www.bankingnewsai.com/ai-regulation/documents/hmt-financial-services-ai-adoption-plan-2026) — Financial Services AI Adoption Plan (Jul 14, 2026)
- [2026 BoE/FCA AI survey](https://www.bankingnewsai.com/ai-regulation/documents/uk-ai-in-financial-services-survey-2026) — The Bank of England and FCA's 2026 AI Survey (Jun 5, 2026)
- [BoE/FCA/HMT joint statement on frontier AI and cyber resilience (May 2026)](https://www.bankingnewsai.com/ai-regulation/documents/uk-joint-statement-frontier-ai-cyber-resilience-2026) — The Bank, FCA and HM Treasury joint statement on Frontier AI models and cyber resilience (May 15, 2026)
- [BoE response to Treasury Committee AI inquiry (Apr 2026)](https://www.bankingnewsai.com/ai-regulation/documents/boe-pra-response-tsc-ai-inquiry-2026) — Response to TSC inquiry report on AI in financial services (Apr 1, 2026)
- [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)
- [DSIT/DBT strategic letters to regulators (Jan 2026)](https://www.bankingnewsai.com/ai-regulation/documents/gov-uk-dsit-dbt-safe-ai-innovation-letter-2026) — How will regulators enable safe AI-powered innovation: joint letter from DSIT Secretary of State and DBT Secretary of State (Jan 28, 2026)

Last reviewed Aug 26, 2026. Cite the official text (https://www.bankofengland.co.uk/prudential-regulation/publication/2023/october/artificial-intelligence-and-machine-learning) for the rule and this page for the summary and dates.

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