James Benford, the Executive Director for Data and Analytics Transformation and Chief Data Officer at the Bank of England, has outlined a comprehensive strategy to streamline data governance and bolster data testing frameworks across the financial institution.
Speaking at a recent event in the British capital, Benford disclosed the Bank is rapidly advancing AI testing capabilities.
“We conducting robust testing, discuss and document risks, and put mitigants in place. AI systems, and the data that underlie them, need to be transparent and comprehensible. Training is critical,” he shared.
He stressed the BoE “aims for reliable AI systems that perform to a high standard and are grounded in high-quality data. For load bearing applications, we seek to constrain or at least reference model outputs to high quality data that we trust. In some cases, this means using smaller models to do the work.”
He added that the Bank proactively addresses potential threats, through robust security measures, testing and privacy controls.
In addition, “writing code with the help of AI is accelerating our transformation efforts,” Benford said. “The code that powers our 35,000 statistics has built up over two and a half decades.”
He added: “Moving that onto our new cloud platform would have taken several months by hand. With AI generating modern code and testing it, the process has been cut down to days.”
However, Benford cautioned against unchecked AI development, underscoring the importance of ethical standards.
“Our AI policy comprises five elements,” he explained. “There is a list of approved tools with prescribed uses. Certain tools are prohibited, and we do not use AI to make decisions.”
The Bank has also developed a Data, Analytics and AI Ethics Framework to address emerging challenges around AI.
“Innovation through AI needs to be beneficial and scientifically rigorous, fair and inclusive, transparent and secure, compliant and accountable,” Benford stated.
Governance
In addition, the BoE official underscored the critical role of governance in unifying fragmented data practices and enabling safe, effective use of AI.
“Governance helps tackle collective challenges that no individual person or team can solve alone,” Benford stated.
He emphasized the importance of alignment in investment decisions, particularly concerning data platforms, data organization, and structured training, which he referred to as ‘public goods’ that are vulnerable to underinvestment.
The Bank of England has embarked on a significant data transformation initiative, driven by a newly established Data and Analytics Board at the executive level.
“We have set up a Data and Analytics Board, chaired jointly between our data and technology areas,” Benford explained.
“Its objective is to align everyone around a shared goal – making the best use of data to fulfil the Bank’s mission.”
“Certain AI tools are prohibited, and we do not use AI to make decisions.”
– James Benford
Benford acknowledged that the Bank’s data strategy is still evolving.
“We have by no means cracked it at the Bank,” he admitted, noting that the central data team was only established in 2015.
“Before ten years ago, we had no central data team. Teams across the Bank looked after their data using largely local systems. Our central data area was set up to bring more order to things.”
At the heart of the Bank’s transformation strategy is a new enterprise data platform hosted on the cloud.
Benford noted, “We have set up a new, secure environment to safely work with data on the cloud. Development areas have been provisioned for our priority programmes and exemplar use cases.”
The Bank is also rolling out data fluency training for all staff, aiming to integrate data skills into every level of the organization.
Looking ahead, Benford emphasized that the Bank’s data governance journey is far from complete.
“Each of the challenges we’ve faced has required us to pause, reframe, and design with the end-user in mind,” he said. “While we have made meaningful progress, we are still very much on that journey.”
For Benford, effective governance is not a limitation but a liberating force. “Done right, data governance doesn’t hold us back,” he concluded. “It sets us free.”
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