A landmark review by the FCA has found AI could reshape financial services by 2030, changing how firms operate, consumers make decisions, markets compete and risks emerge.
The Mills Review, commissioned the FCA board and led by FCA executive director Sheldon Mills, is the first work of its kind initiated by a regulator globally, the FCA said.
The four major AI‑driven shifts likely to impact retail financial services are:
- The transformation of firm operations
- The evolution of consumer journeys
- The reshaping of competition and market power
- The amplification of fraud and cyber risks.
Agentic AI is already being used personal finance, with research commissioned by the FCA showing that a fifth of people – equivalent to 11 million UK adults – are likely to use AI that can act autonomously within pre-set goals, although consumers voiced concerns about trust and control of AI.
The review found that while AI has the potential to improve access, personalisation and efficiency, it could also amplify risks associated with fraud, cyber security, consumer harm and market concentration.
The Mills Review outlined seven recommendations for the FCA board and executive to consider:
- Secure and adapt the regulatory perimeter.
- Strengthen system-wide coordination and oversight.
- Monitor the transition to autonomous models and adapt regulatory frameworks.
- Scale up the FCA’s AI Lab to support AI models and system innovation in financial services.
- Enable the foundations for agentic finance.
- Build and adopt an AI-enabled agentic supervisory model.
- Develop a trusted public-interest AI-enabled financial capability service.
Executive director Sheldon Mills said: “Artificial intelligence will transform financial services by 2030. It creates significant opportunities for consumers, firms and the wider economy.
“This report sets out a roadmap for how industry regulators and government can prepare for the next phase of AI-driven change in our world-leading financial services sector.”
Ashley Alder, chair of the FCA, said: “As is clear in the report, we need to keep pace with a rapidly changing environment and the principles-based, outcomes focussed approach we’ve taken on AI – relying on the Consumer Duty and Senior Managers Regime – has been critical to us doing so.
“The recommendations build on work the FCA has been doing – not least allowing firms to test their use of AI with us – and our own use of AI to be a smarter regulator, more efficient and effective.”
