FCA Weighs Stronger AI Powers as 11 Million Britons Consider Automated Financial Decisions
Updated
Updated · The Guardian · Jul 6
FCA Weighs Stronger AI Powers as 11 Million Britons Consider Automated Financial Decisions
3 articles · Updated · The Guardian · Jul 6
Summary
Sheldon Mills’ review urged the FCA to seek stronger powers over AI in finance, including direct oversight of critical third parties such as AI firms and cloud providers.
The report says AI could widen access to advice and lower costs by 2030, but also heighten fraud, cyber and consumer-harm risks as firms shift from human-led to AI-enabled services.
About one-fifth of UK consumers — roughly 11 million people — are open to using AI for savings and borrowing decisions, even though AI models are not currently scrutinized by financial regulators and losses would not be compensated.
Mills also recommended the FCA deploy its own AI tools for supervision and launch another review within six months into harms from AI-driven personal finance and unregulated providers.
The debate has intensified after Anthropic’s Mythos model was flagged as a major cybersecurity threat to banks; the FCA will now decide how to respond to the review’s roadmap.
Will the UK's tough new AI rules stifle its fintech sector or set a new global gold standard?
With AI financial advice on the rise, who will be legally responsible when consumers inevitably lose their money?
Can a financial regulator effectively police the powerful Big Tech firms that now dominate the world of finance?
AI in UK Finance 2026: 88% Adoption Spurs Regulatory Overhaul and Governance Race
Overview
As of January 2026, the UK financial sector is rapidly adopting artificial intelligence, with over three-quarters of firms using AI for key operations. In response, the Financial Conduct Authority (FCA) is proactively shaping its regulatory approach, launching the Mills Review—the first global initiative by a regulator to deeply examine AI’s evolution and its impact on consumers, markets, and firms. Regulators are actively developing new frameworks and collaborating with other bodies to ensure oversight keeps pace with innovation, aiming to balance the benefits of AI with the need for robust governance and consumer protection.