AI usage

Welcome to AI FAQs – your resource for understanding how artificial intelligence (AI) impacts your experience with our services. Here, you'll find answers to common questions about AI, including how we use it, how we govern it, and how it benefits you.

Our Commitment to Transparency

We prioritise your privacy and security. We have implemented personalised recommendations tailored to you, improving the customer journey, introducing operational efficiencies to improve our services and to help ensure the security of your data. We use AI responsibly and ethically through our firm governance structure.

Your Rights and Choices

M&G is committed to providing services with robust privacy protections. Refer to your Privacy Notice to understand the different rights you have and how we process your personal information.

Explore the sections below to find detailed answers to your questions about AI and its role in our services.

• What is AI? AI, or artificial intelligence, is a combination of a number of emerging technologies that have the potential to mimic human intelligence and/or have the capacity to learn or adapt to new experiences or stimuli. These systems can perform tasks such as analysing financial data, providing customer support, and detecting fraudulent activities.
• How is AI used in M&G? We leverage a range of AI technologies to enhance and automate our processes. Our AI applications include supporting investment research, automating customer support, detecting fraud, and optimising operations. We use Machine Learning in areas such as statistical analysis and modelling, and employ automated intelligent extraction of information from documents to minimise manual work and reduce the risk of human error. Additionally, we integrate Generative AI into our internal processes to boost productivity and enhance the customer experience. Our AI systems are designed to operate transparently and ethically, ensuring secure and efficient services and an enhanced experience for our customers.
• Is my data safe with AI used at M&G? We adhere to strict data protection regulations and AI regulations, where applicable, such as the EU AI Act, to ensure that your personal and financial information is handled securely and responsibly. To achieve this, we have established a cross-functional AI Governance Forum. This forum brings together relevant stakeholders from across the organisation, including Legal, Security, Compliance, Risk, Data, Architecture, and Privacy. The purpose of the AI Governance Forum is to oversee the implementation of AI technologies and to review and evaluate AI use cases. By involving experts from these diverse fields, we ensure that our AI initiatives are conducted transparently, ethically, and in compliance with relevant regulations and standards. This collaborative approach helps us to mitigate risks and maximise the benefits of AI for our organisation and our clients. We carefully select suppliers who meet our onboarding processes.
• What are the benefits associated with AI? AI can automate repetitive tasks, freeing up human time to focus on more complex tasks, and reducing the risk of human error. It can analyse vast amounts of data quickly and provide insights that can be used for decision-making. AI-powered chatbots and virtual assistants can provide instant support to customers, improving response times and overall satisfaction. By automating tasks and improving efficiency, AI can significantly enhance customer experience and optimise business processes.
• What are the risks associated with AI? While AI offers many benefits, there are risks based on the intended purpose of AI systems and the impact it may have on individuals. These risks include biased decision-making and inaccurate outcomes such as hallucinations, i.e. responses from AI can be fictional. We take these risks seriously and implement measures to mitigate them, in compliance with the applicable laws and regulations. However, these risks cannot be fully mitigated.
  
  Some types of AI are considered prohibited or high-risk because they can significantly affect people’s rights or safety. The EU AI Act provides clear definitions of prohibited and high Risk AI systems. In addition, regulations such as the GDPR define certain forms of processing as likely to present a high risk, such as fully automated decision-making which may have significant impact on people. We carefully evaluate AI solutions against regulatory definitions and our own internal risk policies. We put processes in place to address risks, to alert us to issues, and to enable us to react promptly to protect our customers and colleagues.

• How do I know whether an AI system is “prohibited” or high-risk? Whether an AI system is prohibited or high-risk depends on what it does and how it’s used. Some types of AI systems are completely banned because they are considered too dangerous or harmful. They pose serious risks to people’s rights and safety, so they are not allowed to be used under any circumstances. Some AI systems are considered high-risk because they could cause harm or lead to unfair outcomes. This includes tools used in hiring, such as those that screen CVs or assess candidates, as well as systems used for facial recognition, emotion detection, or analysing biometric data.
• Can AI make important decisions on its own? AI systems can provide insights and recommendations based on data, but AI outputs may not always be fully accurate, and this is why human oversight is typically built into our AI system design. This means that AI output is reviewed by a person where there is potential for harmful impact. Our AI systems are designed to assist and augment human decision-making, not replace it. We do not use AI to make important decisions that impact people without appropriate oversight.
• How do you ensure AI is used ethically at M&G? We follow ethical guidelines and comply with regulations like the EU AI Act to ensure our AI systems are fair, transparent, and accountable. We regularly review and where possible update our AI practices to align with the latest standards and best practices in the financial industry.
• Where can I find more information about AI and the EU AI Act? For more information about AI and the EU AI Act, you can visit the official EU AI Act Information Platform, EU AI Act website and EU AI Act FAQs. Additionally, our privacy notices provide information on how we use AI with regards to personal data. If you have any questions with respect to how we use your personal data with AI, please contact our Privacy team at privacy.advisory@mandg.com.