The Financial Conduct Authority (FCA) has launched a new review into the implications of advanced artificial intelligence for consumers, retail financial markets and financial regulators.

The review will be led by Sheldon Mills and builds on the FCA’s existing work on AI, including its AI Discussion Paper, AI Sprint and AI Lab initiatives. These include AI Live Testing and the Supercharged Sandbox, supported by NVIDIA.

AI is already embedded across many parts of the financial services sector. However, the FCA says rapid advances in generative, agentic and emerging forms of AI mean the next phase of development could be transformative, with the potential to reshape markets, alter how firms compete and change the way consumers engage with retail financial services.

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.”

FOUR THEMES

As part of the review, the FCA is seeking views across four interrelated themes. These include how AI could evolve in the future, particularly through the development of more autonomous and agentic systems, and how such developments could affect markets and firms, including competition, market structure and the UK’s competitiveness.

The regulator is also examining the potential impact on consumers, both in terms of how consumer behaviour may be influenced by AI and how changing expectations could in turn shape financial markets.

A further focus is how financial regulators themselves may need to evolve to ensure retail financial markets continue to function effectively.

While wholesale markets and wider societal impacts are outside the formal scope of the review, the FCA said developments in these areas may still indirectly influence retail financial services and will be considered where relevant.

The regulator is separately undertaking work on the impact of AI in wholesale markets, including through its live testing partnership.

Feedback from the review will inform a series of recommendations to be reported to the FCA board in summer 2026, setting out how the regulator can guide and respond to AI-driven change. This work will culminate in an external publication.

The deadline for comments is 24 February 2026.