FCA Outlines AI Strategy Shaped by Industry Engagement

Key points include:

➡️ Existing Frameworks: The FCA will not introduce new AI regulations and will rely on the Consumer Duty, Senior Managers and Certification Regime (SM&CR) and governance and controls expectations;

➡️ Good and Poor Practice: The FCA will share examples later this year on AI governance, model testing, customer fairness and explainability; and

➡️ AI Input Zone: Stakeholders can share use cases, challenges, barriers, emerging risks and areas where further clarity would help through a new online survey.

✅ Firms should assess AI governance, model oversight, customer outcome testing and explainability arrangements, and consider submitting evidence to the AI Input Zone by 19 June 2026.

✅ Firms should also monitor the findings of the forthcoming Mills Review focused on the long-term impact of AI on retail financial services, due in summer 2026.