A senior Financial Conduct Authority official, Sheldon Mills, has warned that regulators are in an "arms race" to keep pace with the rapid growth of AI in financial services, with around a fifth of UK adults already open to using AI models for personal financial decisions despite these tools falling outside current regulatory oversight. A report authored by Mills calls for the FCA to review within three to six months whether AI chatbots providing financial guidance should be subject to regulation, and recommends expanding the FCA's powers to supervise major AI providers such as OpenAI, Google, and Anthropic. While the report highlights risks including bias, fraud, and consumer manipulation, it also acknowledges AI's potential to democratise access to sophisticated financial advice for ordinary consumers.
