While U.S. institutions like JPMorgan have already secured entry to the powerful tool, which identifies network vulnerabilities, domestic UK banks remain on the sidelines without a clear timeline for adoption. This dependency on foreign providers has prompted calls for a shift in strategy, with officials urging the government to cultivate home-grown infrastructure and diversify partnerships beyond the United States, including ties with firms in France and China.

To address these risks, Rees and Lloyds Banking Group’s head of AI, Rohit Dhawan, have proposed a formal framework to bring critical technology providers under the oversight of financial regulators. The plan, presented ahead of finance minister Rachel Reeves’ Mansion House address, suggests designating key AI firms as critical infrastructure. This would mirror recent efforts to regulate cloud service providers, aiming to mitigate the systemic dangers posed by a market concentrated in the hands of a few foreign tech giants.