Regulator seeks views on how artificial intelligence could reshape retail financial services by 2030
The Financial Conduct Authority (FCA) has begun a review into how advanced artificial intelligence (AI) may affect consumers, retail financial markets and regulators over the rest of this decade.
The review, led by Sheldon Mills, draws on the FCA’s existing AI work, including its AI Discussion Paper, AI Sprint, AI Lab with live testing, and its Supercharged Sandbox developed with NVIDIA.
The regulator noted that AI is already in use across financial services, and that rapid advances in generative, agentic and other emerging forms could alter how markets function, how firms compete and how consumers access retail products, including mortgages.
“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,” said Sheldon Mills, executive director at the FCA.
“By taking a forward-looking view, the review will help the FCA continue to support innovation while promoting the safe and trusted adoption of AI in retail financial services.”
The FCA is inviting feedback on four main themes: how AI might develop, including more autonomous and agentic systems; how this could change market structure, competition and UK competitiveness; how consumers may be affected and influence markets; and how financial regulators may need to adapt to keep retail markets working well.
Wholesale markets and wider societal issues are outside the formal scope, but the FCA said developments there may still be considered where relevant. It is running separate work on AI in wholesale markets, including live testing.
“The FCA’s Mills Review is a clear signal that regulators are looking beyond today’s use of AI and towards its long-term impact on retail financial services, consumer outcomes and financial stability,” said Richard Pinch, senior risk director at independent financial services consultancy Broadstone
“As AI becomes more embedded in customer interactions, decision-making and operational processes, the regulatory focus must by necessity shift to governance and accountability to protect consumer outcomes.
“The challenge across the market will be to demonstrate that AI-driven models and tools align with the ethos of Consumer Duty as they evolve. Those that build strong oversight frameworks now will be better placed to innovate with confidence while meeting the FCA’s expectations.”
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