The Financial Conduct Authority (FCA) has launched a major review to explore how advanced artificial intelligence (AI) could impact consumers, financial markets, and regulators in the coming years.

With AI already integrated into many banking and insurance services, the FCA is keen to understand the potential effects it may have over the next few years.

The aim of the review

The evidence collected will guide the FCA in deciding how to support innovation while ensuring that retail financial services remain safe and reliable. At this stage, the FCA does not intend to introduce AI-specific regulation, but it wants to examine how financial regulators may need to adapt as AI becomes increasingly embedded in the sector.

Key themes under consideration

The FCA is inviting feedback on four main areas:

  • The likely development of AI, including the emergence of more autonomous or “agentic” systems.

  • How these developments could influence firms and financial markets.

  • The potential impact on consumers.

  • The ways in which financial regulators may need to evolve.

While wholesale markets and broader societal issues are not the primary focus of this review, the FCA will take them into account where they have indirect effects on retail services.

To read more about the review and respond to the call for views, see the FCA website.