The FCA just published "The Mills Review" on AI and the future of retail financial services this week.
Links to original statement and full report below (PDF):
Statement
Report
Key findings:
- Retail financial services are moving from human-led, towards AI-enabled, continuous and delegated services.
- AI could reshape the sector by 2030 – changing how firms operate, consumers make decisions, markets compete and risks emerge.
- AI could improve outcomes and support growth by reducing friction and tackling long-standing challenges, such as advice gaps, low switching and protection gaps. But it could also amplify risks associated with fraud, cyber security and consumer harm.
- Consumer adoption will depend on trust, control and access – even though 1 in 5 UK adults are already open to AI making decisions for them.
Recommendations:
- 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.
#AI #innovationcommunity
- Todor
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Todor Kostov
Director
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