The FCA has launched a major review into how AI could change retail financial markets, regulators, and consumers.
The review, led by executive director Sheldon Mills, will take a longer-term look at the effect of AI.
The review will examine the implications of AI as it rapidly advances and will build upon the work the regulator has done on AI, including the AI Discussion Paper, AI Sprint, and AI Lab.
Mr Mills said: “AI is already shaping financial services, but its longer-term effects may be more far-reaching. This review will consider how emerging uses of AI could influence consumers, markets and firms, looking towards 2030 and beyond.
He said the review does not change the FCA’s regulatory approach. “We remain outcomes-based and technology-neutral, ensuring greater flexibility for us and firms to adapt to technological change and market developments.”
The FCA is asking for views on the opportunities and risks as AI becomes more capable, how AI could reshape competition and the customer relationship and how existing regulatory frameworks may need to adapt.
The FCA is seeking views on four angles:
• How AI could evolve in the future, including the development of more autonomous and agentic systems.
• How these developments could affect markets and firms, including changes to competition and market structure and UK competitiveness.
• The impact on consumers, including how consumers will be influenced by AI but also influence financial markets through new expectations.
• How financial regulators may need to evolve to continue ensuring that retail financial markets work well.
The deadline for comments is 24 February.