Britain Should Consider Regulating AI Models, FCA Official Says
The review says more than a quarter of UK consumers trust these tools for financial advice, exposing gaps in current protections.
- On Monday, Financial Conduct Authority Executive Director Sheldon Mills released a landmark review predicting artificial intelligence will transform retail financial services by 2030, providing regulators a roadmap to manage emerging risks.
- Research indicates that by 2030, around 11 million UK adults will likely use AI that makes autonomous financial decisions within pre-set goals, helping address the advice gap where only 9% of consumers use traditional advice.
- While offering opportunities, the review warns that widespread AI adoption could amplify fraud, cyber risks, and market concentration, as shared reliance on technology providers creates potential points of failure across the British financial system.
- Mills recommended the Financial Conduct Authority consider within three to six months whether to "secure and adapt" the regulatory perimeter by reviewing general-purpose models like ChatGPT, Claude, and Gemini currently outside its authority.
- Britain has deliberately avoided a bespoke AI law to maintain a pro-innovation edge, but Mills suggests the sector-by-sector model has a regulatory hole for general-purpose systems built by American companies.
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A senior FCA official says Britain should weigh regulating AI models directly
Britain should consider whether large language models such as ChatGPT, Claude, and Gemini ought to be regulated as they increasingly influence how consumers make financial decisions, a senior official at the Financial Conduct Authority has said. Sheldon Mills, an executive director at the FCA, argued that the existing rulebook will have to evolve as firms […] This story continues at The Next Web
Britain should consider regulating AI models, FCA official says
Britain should review whether large language models such as ChatGPT, Claude and Gemini should be regulated as general-purpose AI tools as they increasingly influence consumer financial decisions, a senior official said on Monday.
The British financial regulator, the Financial Conduct Authority (FCA), wants to be granted more powers for stricter oversight of the use of AI in advising people on personal financial decisions such as saving, borrowing, or investing.
The British financial regulator, the Financial Conduct Authority (FCA), wants to be granted more powers to more strictly oversee the use of AI in advising people on personal financial decisions such as saving, borrowing, or investing. Director Sheldon Mills, who is responsible for consumer protection and competition at the FCA, advocates for this in an interview with the business newspaper Financial Times.
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