The Financial Conduct Authority (FCA) has launched a review into the implications of advanced artificial intelligence (AI) on consumers, retail financial markets and regulators.
In November of last year, reports emerged that FCA executive director of consumers and competition Sheldon Mills (pictured) would be leading a review into the use of AI in financial services.
This morning the regulator confirmed the scale and scope of Mills’ Review, with the FCA seeking views on four interrelated themes:
- Future evolution of AI technology
How AI could evolve in the future, including the development of more powerful, autonomous and agentic systems, assessing the whole AI value chain. - Future impact of AI on markets and firms
How these developments could affect markets and firms, including changes to competition and market structure and UK competitiveness. - Future consumer trends
The impact on consumers, including how AI could improve outcomes, create new risks, change behaviours, and alter demand and provision of financial services. - Future regulatory approach
How financial regulators may need to evolve to continue ensuring that retail financial markets work well.
The review builds on the FCA’s existing work on AI including its AI Discussion Paper, AI Sprint, and AI Lab including AI Live Testing and its Supercharged Sandbox supported by Nvidia.
While wholesale markets and broader societal impacts are out of scope, the FCA said its review recognises that developments in these areas may indirectly influence retail financial services and will be considered where relevant.
It added it is also separately doing extensive work on the impact of AI in wholesale markets, in particular through our live testing partnership.
Mills confirmed wholesale markets and broader societal impacts, such as employment effects, are out of scope, although these areas will be considered where relevant to retail markets.
For example, widespread availability of AI investment tools could increase retail participation in capital markets.
The feedback will shape a series of recommendations to be reported to the FCA board in summer 2026, informing how the regulator can guide and respond to AI-driven transformation. This will culminate in an external publication.
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.
“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 deadline for comments is 24 February 2026.
