AI technologies have the potential to unlock significant growth for the UK financial services sector through novel personalised products and services, improved cost-efficiency, increased consumer confidence, and more effective management of financial, systemic, and security risks. However, there are currently significant barriers to adoption of these technologies, which stem from a capability deficit in translating high-level principles (of which there is an abundance) concerning trustworthy design, development and deployment of AI technologies ("trustworthy AI"), including safety, fairness, privacy-awareness, security, transparency, accountability, robustness and resilience, to concrete engineering, governance, and commercial practice. In developing an actionable framework for trustworthy AI, the major research challenge that needs to be overcome lies in resolving the tensions and tradeoffs which inevitably arise between all these aspects when considering specific application settings.For example, reducing systemic risk may require data sharing that creates security risks; testing algorithms for fairness may require gathering more sensitive personal data; increasing the accuracy of predictive models may pose threats to fair treatment of customers; improved transparency may open systems up to being "gamed" by adversarial actors, creating vulnerabilities to system-wide risks. This comes with a business challenge to match. Financial service providers that are adopting AI approaches will experience a profound transformation in key areas of business as customer engagement, risk, decisioning, compliance and other functions transition to largely data-driven and algorithmically mediated processes that involve less and less human oversight. Yet, adapting current innovation, governance, partnership and stakeholder relation management practice in response to these changes can only be successfully achieved once assurances can be confidently given regarding the trustworthiness of target AI applications. Our research hypothesis is based on recognising the close interplay between these research and business challenges: Notions of trustworthiness in AI can only be operationalised sufficiently to provide necessary assurances in a concrete business setting that generates specific requirements to drive fundamental research into practical solutions, with solutions which balance all of these potentially conflicting requirements simultaneously. Recognising the importance of close industry-academia collaboration to enable responsible innovation in this area, the partnership will embark on a systematic programme of industrially-driven interdisciplinary research, building on the strength of the existing Turing-HSBC partnership. It will achieve a step change in terms of the ability of financial service providers to enable trustworthy data-driven decision making while enhancing their resilience, accountability and operational robustness using AI by improving our understanding of sequential data-driven decision making, privacy- and security- enhancing technologies, methods to balance ethical, commercial, and regulatory requirements, the connection between micro- and macro-level risk, validation and certification methods for AI models, and synthetic data generation. To help drive innovation across the industry in a safe way which will help establish the appropriate regulatory and governance framework, and a common "sandbox" environment to enable experimentation with emerging solutions and to test their viability in a real-world business context. This will also provide the cornerstone for impact anticipation and continual stakeholder engagement in the spirit of responsible research and innovation.

The proposed programme of research will establish the machine learning foundations and artificial intelligence methodologies for Digital Twins. Digital Twins are digital representations of real-world physical phenomena and assets, that are coupled with the corresponding physical twin through instrumentation and live data and information flows. This research programme will establish next-generation Digital Twins that will enable decision makers to perform accurate but simulated "what-if" scenarios in order to better understand the real world phenomena and improve overall decision making and outcomes.

The Digital Economy Research Centre (DERC) will theorise, design, develop, and evaluate new digitally mediated models of citizen participation that engage communities, the third sector, local government and (crucially) the commercial digital economy in developing the future of local service provision and local democracy. DERC will deliver a sustained program of multi- and cross- disciplinary research using research methods that are participatory, action-based, and embedded in the real world. The research approach will operate across multiple scales (e.g. individual, family, community, institution) and involve long-term embedded research activity at scale. The overarching challenges are significant: -- the development of new technologies and cloud-based platforms to provide access to open and citizen-generated data, big data analytics and software services at scale to support trusted communication, transactions, and co-production between coalitions of citizens, local government, the third and commercial sectors; -- the development of participatory methods to design digital services to support citizen prosumption at the scales of communities and beyond; -- the development of new cross-disciplinary insights into the role of digital technologies to support these service delivery contexts as well as understandings of the interdependency between contexts and their corresponding services. The backbone of this research agenda is a commitment to social inclusion and the utilisation of participatory processes for user engagement, consultation and representation in the design and adoption of new forms of digital services. The main research themes of DERC address the development of models of digitally enabled citizen participation in local democracy (planning), public health, social care and education, and the nature of new civic media to support these. The Centre's research will be conducted in the context of local government service provision in the Northeast of England, in close partnership with Newcastle City Council, Gateshead Council and Northumberland, and supported by a consortium of key commercial, third sector and professional body partners. DERC's extensive program of research, knowledge exchange and public engagement activities will involve over 20 postdoctoral researchers and 25 investigators from Computer Science (HCI, Social Computing, Cloud Computing, Security), Business & Economics, Behavioural Science, Planning, Education, Statistics, Social Gerontology, Public Health and Health Services Research.

CENTRE VISION Our vision for the new CDT in Financial Computing and Analytics is to as a national 'beacon' linking PhD & Masters' students, industry and academia in financial computing and analytics. We and our Industry partners are also central to the forthcoming investments in Big Data from EPSRC and ESRC (e.g. Business Datasafe). Its principal objective is to educate the next generation of elite PhDs with unparalleled, cross-disciplinary expertise in applied computing, analytics and financial mathematics, as well as in-depth sector understanding, to meet an increasing demand for their skills within the Financial Service Industry, Government, Retail and other Service sectors. Our existing DTC in Financial Computing is unique (there is no other research & training activity like it in the world) and by placing our PhD students in financial institutions and regulators it has had a major impact on the UK financial sector, as indicated by the Financial Times article (School for QUANTS) and our Letters of Support. The CDT is a new partnership between UCL, LSE and ICL, all providing MRes courses and PhD supervision. NATIONAL IMPORTANCE & GROWING NEED FOR CROSS-DISCIPLINARY SKILLS London is the world's leading international financial centre and the UK financial services industry is the key sector for the UK economy, contributed £124bn to the UK economy, generating a trade surplus of £36bn in 2010 and employing 1 million people. London is also the location for our financial regulators and world-class Retailers. Our Financial and other Service industries are therefore crucial to the UK's, and especially London's, continuing social and economic prosperity. Although we receive over 600 enquiries/applications per annum, and growing, recent reports by McKinsey and Accenture highlight the major and growing skills shortage of (postgrad) IT/data scientists in the USA 22,000 and the UK 4,000. EPSRC PRIORITIES AND RESEARCH The proposed CDT is aligned to EPSRC priorities across a number of Themes, in particular: Data to Knowledge (an ICT Theme priority), Industrially Focussed Mathematical Modelling (Mathematical Sciences) and New Digital Ventures (Digital Economy). The crucially important IT research challenges in just one area, namely the application of software engineering, AI and verification/correctness to algorithms for automated trading, illustrates the enormous research opportunities. IMPACT The current DTC in Financial Computing is acknowledged by the Department of Business Innovation & Skills as having had a major impact on our financial industry partners and on our academic partners. This will continue with the new CDT, impacting Regulators, government, Retailers and analytics companies. * STUDENTS - In 2011 the Centre funded more female PhD students than males, and in 2012 the Centre started 40 new PhD students if we count DTC funded students, students funded by other sources, such as retail and analytics companies, and industry-based part-time students. * ACADEMIA - UCL, LSE and Imperial College have all appointed new faculty in applied financial computing and business analytics; and UCL and ICL have started new Masters programmes. * INDUSTRY - many of the Banks now have established formal PhD programmes, in part due to the current DTC, and proved lecturers to the partners for industry-oriented programmes. * REGULATORS AND GOVERNMENT- we have placed PhD students in the BoE/FSA/PRA/FCA and the Cabinet Office, and as discussed in the Case for Support, we have held individual meetings and workshops with the Regulators (BoE, PRA, FCA) and with new (Retailer) partners (Tesco, BUPA, Unilever) to discuss how we can support them. * SOCIETAL - we encourage and support our PhD students in launching their own start-up, and we provide Masters and Undergraduate students to London-based start-ups, especially in the area called New Finance (e.g. P2P lending, crowdfunding).

Technological advances have done, and will do, much to improve cybersecurity. But, a technological approach is only part of the solution - achieving digital security is inherently a socio-technical endeavour. By combining world-leading research with challenge fellows from across the social sciences, expert working groups, innovative approaches to networking and agile, industry-facing commissioning, the DiScriBe Hub+ will not only address the challenges faced by the ISCF Digital Security by Design (DSbD) initiative, but will fundamentally reshape the ways in which social sciences and STEM disciplines work together to address the challenges of digital security by design in the 21st Century. The core missions of the DiScriBe Hub+ are to provide interdisciplinary leadership to realise digital security by design by connecting social science to a hardware layer that rarely receives support or engagement from social science. This social science input will help to unleash the transformational potential that the hardware innovations within Digital Security by Design makes possible. The Hub+ has five main ways of doing this: 1) Running a series of deep engagements with DSbD stakeholders using techniques from the arts and humanities in order to elicit a shared view of 'Digital Security by Design Futures' 2) Conducting an innovative programme of interdisciplinary research to improve our understanding of the barriers and incentives around adoption of new secure architectures, business readiness levels and adoption, regulatory opportunities and challenges, and ways these are experienced and understood across diverse sectors; 3) Commissioning a range of agile, responsive, industry-facing projects and 'connecting capabilities' grants to address specific DSbD challenges; 4) Establishing a network of 'challenge fellows' tasked with synthesising research outcomes (core and commissioned), connecting insights to the wider Digital Security by Design initiative, and ensuring impact, alongside expert working groups comprising industry and researchers to tackle specific problems in a sharp, focussed way; and, 5) Building a community of social scientists, hardware engineers, software developers, industry and policy makers who are deeply engaged in applying a socio-technical lens to digital security by design. DiScriBe is unique in its focus on the benefits of connecting security architecture innovation with leading social science - and will provide a step change in how cybersecurity is treated as an inter-disciplinary, social as well as technical, problem. Many of the lessons on cross disciplinary working will be tested and embedded through close working with the Bristol Digital Futures Institute - a £70m investment in how our ways of working will need to change in the digital future. We have expert challenge fellows who are leading social scientists applying their work to cybersecurity for the first time. These fellows will also lead working groups on specific topics connecting industry, policy and academia, which in turn will lead to a range of open calls for commissioned industry-facing research. This research will be both theoretically rigorous within social science, while also remaining responsive and agile enough to meet the needs of the wider DSbD programme. As a consequence, a major outcome of DiScriBE will not only be a vibrant, new community, but novel insights that can be applied to the development and implementation of new security-related developments.