The UK Financial Conduct Authority has initiated a comprehensive review aimed at understanding the impact of artificial intelligence in retail financial services over the next ten years. This effort, led by Executive Director Sheldon Mills, builds upon existing AI programs such as the AI Lab and the innovative Supercharged Sandbox.
As AI technology increasingly influences financial services, the review seeks to grasp its long-term implications. Understanding the transformative potential of advances in AI will be essential for the UK financial sector. The examination will delve into the expected evolution of AI, its influence on competition and national competitiveness, as well as changes in consumer expectations and behaviors. The regulatory framework will also come under scrutiny to align with these advancements.
It should be noted that while the review specifically focuses on retail financial services, it will also consider relevant effects on wholesale markets, ensuring a well-rounded understanding of the broader landscape.
The FCA plans to gather insights from stakeholders leading to recommendations for the FCA Board by summer 2026. A detailed public report will follow, providing a thorough overview of the findings and suggested approaches for incorporating AI safely into retail financial services.