UK regulator kicks off review on impact of AI on retail finance

The review, led by FCA ‌Executive Director Sheldon Mills, volition look astatine however the improvement of AI could impact markets ‌and firms, including changes to contention and marketplace structure, arsenic good arsenic the interaction connected consumers. Findings volition spell to the FCA committee successful mid‑2026. The regulator reiterated that it does not mean to present AI‑specific rules.

"As ⁠I statesman this review, ‌the technological scenery is evolving astatine a singular pace. It is wholly plausible that we volition spot wide usage ‍of agentic AI systems, neuromorphic computing and quantum capability," Mills said. "These exertion changes volition instrumentality spot successful the discourse of the maturation of integer finance, including blockchain ​and astute contracts, tokenisation and integer assets."

Tom Callaby, spouse astatine instrumentality ‌firm CMS, said that truthful acold the usage of AI successful retail facing applications successful the UK had been "limited" but firms were progressively considering caller usage cases. "The FCA should not adjacent itself disconnected to updating oregon adjusting its approach, arsenic it has been wide that a deficiency of ⁠tailored rules and guidance successful cardinal areas ​has held immoderate firms back,” Callaby added.

The ​parliamentary Treasury Committee connected January 20 published a study urging fiscal regulators including the FCA to determination distant from a "wait ‍and see" attack to ⁠AI.

The committee said the FCA should people guidance by the extremity of the twelvemonth connected however user extortion rules use to ⁠AI and however overmuch elder managers request to recognize the systems they oversee.

(Reporting by Prerna ‌Bedi successful Bengaluru and Phoebe Seers successful London; Editing by ‌Maju Samuel and Tommy Reggiori Wilkes)