British lawmakers are increasingly concerned about the unchecked risks of artificial intelligence within the financial sector. The Treasury Committee and Members of Parliament are urging the Financial Conduct Authority (FCA) and the Bank of England to implement AI-specific stress tests, criticizing a "wait-and-see" approach. With over 75% of UK City firms now using AI, regulators face pressure to address potential harms like fraud, cybersecurity vulnerabilities, and threats to market stability. The committee specifically calls for the FCA to issue clear guidance on AI guardrails by the end of the year, and detailed consumer protection rules by the end of 2026.
In the realm of AI-powered financial services, Perpetuals.com, an AI-driven derivatives trading platform, recently launched on Nasdaq on January 20, 2026. Co-founded by former FTX EU specialists Patrick Gruhn and Robin Matzke, the platform leverages an AI model trained on over 10 million trading histories, acquired from FTX EU assets. Similarly, WOO introduced its Starchild AI trading assistant, featuring "Vibe Trading" to enable users to create and execute trading strategies through conversational input, aiming to automate complex tasks.
Beyond finance, AI is also transforming cybersecurity and hardware. Exaforce launched an AI-driven Security Operations Center platform to counter machine-speed cyberattacks, automating threat detection and response. Meanwhile, scientists have developed new probabilistic training methods, called EaPU, for memristor hardware, promising significant energy savings and improved accuracy for AI systems by reducing write operations. These advancements are crucial as the global market for quantum-behavior AI training is projected to reach USD 1,073.65 billion by 2035, growing from USD 40.28 billion in 2025.
The broader implications of AI are also being debated. Palantir CEO Alex Karp stated at the World Economic Forum in Davos that AI will eventually make mass immigration unnecessary by displacing jobs, particularly "elite" white-collar roles, while increasing the value of vocational workers. Palantir, a company with strong ties to government agencies, recently saw its value soar to approximately $400 billion. This perspective highlights how AI is not just a technological shift but also a force that could reshape societal structures and human thinking itself, pushing our minds to new frontiers.
Key Takeaways
- UK lawmakers urge the FCA and Bank of England to implement AI-specific stress tests for financial services, citing risks from over 75% of City firms using AI.
- The Treasury Committee calls for the FCA to issue clear AI guidance by year-end and detailed consumer protection rules by end of 2026.
- Perpetuals.com, an AI-powered derivatives trading platform co-founded by former FTX EU specialists, launched on Nasdaq on January 20, 2026, using an AI model trained on over 10 million trading histories.
- WOO introduced Starchild, an AI trading assistant with "Vibe Trading," allowing users to create strategies through conversational input.
- Exaforce launched an AI-driven Security Operations Center platform to combat machine-speed cyberattacks by automating threat detection and response.
- New probabilistic training methods (EaPU) for memristor hardware promise significant energy savings and improved accuracy for AI systems.
- The global market for quantum-behavior AI training is projected to reach USD 1,073.65 billion by 2035, growing from USD 40.28 billion in 2025 at a 38.86% CAGR.
- Palantir CEO Alex Karp stated at WEF Davos that AI will make mass immigration unnecessary by displacing jobs, with Palantir's value recently soaring to approximately $400 billion.
- An Axis Capital report indicates CISOs are less confident than CEOs about AI improving cyber defenses and are more concerned about AI-driven attacks, with US CEOs being more optimistic than UK CEOs (88% vs 55%).
- The AI stock market rally of 2025 is showing signs of broadening in early 2026, with investments in AI infrastructure redirecting capital flows beyond a few dominant tech companies.
Britain needs AI stress tests for financial services
British lawmakers on the Treasury Committee say financial watchdogs are not doing enough to manage AI risks. They urge the Financial Conduct Authority and the Bank of England to start AI-specific stress tests. This proactive approach would help firms prepare for market shocks and protect consumers. The committee also wants a common framework for AI governance and more industry engagement.
UK MPs warn of serious harm from AI risks
UK Members of Parliament warn that consumers and the financial system face serious harm due to unchecked AI risks. They criticize the government, Bank of England, and FCA for a "wait-and-see" approach. Over 75% of City firms now use AI, leading to concerns about fraud, cybersecurity, and market stability. The Treasury committee urges regulators to conduct AI stress tests and for the FCA to issue clear guidance by year-end.
UK lawmakers demand AI stress tests for finance
British lawmakers on the Treasury Committee are urging financial watchdogs to implement AI-specific stress tests. They want the Financial Conduct Authority and the Bank of England to prepare for potential market shocks caused by AI. The committee also calls for the FCA to release detailed guidance by the end of 2026 on how consumer protection rules apply to AI. They warn that AI poses significant risks, including fraud and threats to financial stability.
UK lawmakers urge AI stress tests for banks
UK lawmakers on the Treasury Select Committee warn that the current "wait-and-see" approach to AI by financial regulators is dangerous. They urge the Bank of England and the Financial Conduct Authority to begin stress-testing for AI risks. Over 75% of UK financial firms use AI, creating new stability risks and cybersecurity vulnerabilities. The committee also called for the FCA to publish guidance on AI guardrails by the end of the year. The Treasury responded by appointing two new "AI Champions" to help manage AI's safe rollout.
Perpetuals.com AI trading platform lists on Nasdaq
Patrick Gruhn and Robin Matzke, former FTX EU trading specialists, launched Perpetuals.com, an AI-powered derivatives platform. The platform, now listed on Nasdaq, offers advanced trading tools for digital assets. It uses AI to improve risk management and trading strategies for perpetual futures contracts. This move signals a greater acceptance of digital asset derivatives in traditional financial markets.
Perpetuals.com launches AI trading platform to public
Perpetuals.com, an AI-powered derivatives trading platform, launched to the public and began trading on Nasdaq on January 20, 2026. Co-founded by Patrick Gruhn and Robin Matzke, the platform's AI model was trained using over 10 million trading histories. They acquired assets from FTX EU after its collapse, leveraging its large dataset of retail trading activity. Perpetuals aims to help product issuers create innovative alternatives for derivatives markets.
Exaforce launches AI security platform for cyber threats
Exaforce developed a new AI-driven Security Operations Center platform to combat the rise of AI-powered cyberattacks. These attacks are now happening at machine speed, making traditional manual security methods insufficient. The Exaforce platform uses AI agents to handle the full security process, from detecting threats to responding quickly. It automates tasks like resetting credentials and ending suspicious sessions, allowing smaller teams to manage complex threats more effectively. The goal is to scale security operations without needing more staff.
New memristor training saves AI energy
Scientists have developed new probabilistic training methods for memristor hardware. These techniques promise significant energy savings and better accuracy for training AI systems. The new approach, called EaPU, uses threshold-based updates that maintain learning while greatly reducing write operations. This marks a major step towards creating practical and sustainable analog AI systems.
WOO launches Starchild AI trading assistant
WOO introduced its new AI trading assistant named Starchild, featuring "Vibe Trading." This innovative feature allows users to explain their trading ideas through simple conversation. Starchild then automatically creates and carries out trading strategies for them. The goal is to make strategy trading easier and more accessible, moving from manual tasks to automated AI operations.
Quantum AI training market to reach 1 trillion by 2035
The global market for quantum-behavior AI training is expected to grow significantly, reaching about USD 1,073.65 billion by 2035. This market was valued at USD 40.28 billion in 2025 and is projected to expand at a 38.86% annual growth rate. Key factors driving this growth include increased government investments, hybrid quantum-classical AI research, and more cloud-based quantum computing. North America currently leads, but Asia Pacific is expected to see the fastest growth.
CEOs and CISOs disagree on AI security risks
A new Axis Capital report reveals that CEOs and CISOs have different views on AI's role in cybersecurity. CISOs are less confident than CEOs that AI will improve cyber defenses, and they worry more about AI-driven cyberattacks. The report also highlights a major difference between US and UK executives. For example, 88% of US CEOs believe AI will make their companies more secure, compared to only 55% of UK CEOs.
Adapting to AI requires new ways of thinking
This article explores how humans develop new ways of thinking to adapt to powerful technologies like AI. It suggests that major technologies change our abilities, reducing some while expanding others. According to psychoanalyst Wilfred Bion, thinking grows when we face overwhelming experiences that we cannot yet understand. AI is presented as one such "disturbing thought" that demands humanity develop new ways to process it. The author believes AI could help evolve human thinking itself, pushing our minds to new frontiers.
Is the AI stock market rally changing direction
The AI stock market rally of 2025, driven by a few large companies, shows signs of shifting in early 2026. While tech stocks show weakness, defensive companies and small-cap players are gaining. Ryan Farias from Segment Wealth Management believes a few dominant stocks will still lead the market. However, he notes the rally is broadening to include non-AI sectors like retail. Companies are investing heavily in AI infrastructure to cut costs and automate, which is redirecting capital flows.
Palantir CEO says AI will end mass immigration
Palantir CEO Alex Karp stated at the World Economic Forum in Davos that AI will make large-scale immigration unnecessary. He believes AI will displace so many jobs that nations will have enough work for their own citizens, especially those with vocational training. Karp suggested that "elite" white-collar jobs are most at risk, while vocational workers will become more valuable. His company, Palantir, has strong ties to US immigration and defense agencies, and its value recently soared to about $400 billion.
Sources
- Britain needs 'AI stress tests' for financial services, lawmakers say
- UK exposed to ‘serious harm’ by failure to tackle AI risks, MPs warn
- Britain needs 'AI stress tests' for financial services, lawmakers say
- UK Lawmakers Call for AI Stress Tests on Banks as Risks Mount
- AI-powered derivatives platform Perpetuals.com shares list on Nasdaq
- AI-Powered Derivatives Platform Perpetuals Rolls Out Trading Platform to the Public
- Exaforce develops an AI-powered security platform to address the growing threat landscape
- Energy-efficient AI training with memristors
- WOO launches AI trading assistant Starchild, introducing "intent-driven trading" feature
- Quantum-behavior AI Training Market Size to Hit USD 1,073.65 Billion by 2035
- CEOs and CISOs differ on AI’s security value and risks
- On Developing New Ways of Thinking to Adapt to AI
- The Performance Chasm: Is the AI Rally Over or Just Shifting Gears?
- Palantir CEO Says AI to Make Large-Scale Immigration Obsolete
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