AI to 'transform' financial services by 2030 - FCA

The Financial Conduct Authority (FCA) has published a review into the implications of advanced artificial intelligence (AI) in retail financial services, finding that it is likely to become a defining force, transforming how firms operate, consumers make financial decisions, and markets function.

The FCA board commissioned the review, led by FCA executive director, Sheldon Mills, in January 2026 to review the implications of advanced AI on consumers, retail financial markets, and regulators.

Research carried out in April 2026, as part of the review, found that 20 per cent of consumers – equivalent to 11 million UK adults – were likely to use 'agentic' AI – which is AI that acts autonomously within pre-set goals.

However, survey respondents also reported concerns about trust and the control of AI.

The Mills Review identified four major AI-driven shifts expected to reshape retail financial services: the transformation of firms’ operations, the evolution of consumer journeys, the alteration of competition and market power, and increased fraud and cyber security risks.

The review set out seven recommendations for the FCA to consider, including securing and adapting the regulatory perimeter, strengthening system-wide coordination and oversight, and monitoring the transition to autonomous models.

It also called for the FCA to scale up its AI Lab, enable the foundations for agentic finance, build and adopt an AI-enabled agentic supervisory model, and develop a trusted public-interest AI-enabled financial capability service.

“AI will transform financial services by 2030,” commented author of the report, FCA executive director, Sheldon Mills. “It creates significant opportunities for consumers, firms and the wider economy.”

He added the report sets out a 'roadmap' for how industry regulators and the government can prepare for the next phase of AI-driven change in the UK financial services sector.

In response, FCA chair, Ashley Alder, said the report, “anticipates the fundamental change agentic AI will bring to financial services”.

“It highlights how consumers and firms can reap significant potential benefits as well how risks can be managed.”

He said the report showed the regulator needs to keep pace with a rapidly changing environment, adding “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,” he concluded.

The FCA said it will launch an 'AI good and poor practice' publication later this year.

This article originally appeared in our sister publication Pensions Age.

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