FCA Reviews How AI Could Transform Retail Financial Services

Key developments include: 

➡️ Forward-Looking Review: The review looks ahead to 2030 and beyond, building on the FCA’s AI Discussion Paper, AI Sprint, AI Lab, AI Live Testing and Supercharged Sandbox; 

➡️ Next-Gen AI Focus: It will assess the implications of generative, agentic and more autonomous AI systems as their use across financial services accelerates; 

➡️ Market & Competition Impacts: The review will explore how AI could change market structure, firm competition and the UK’s competitiveness in retail financial services; 

➡️ Consumer Effects: It will examine how AI may influence consumer behaviour and expectations, and how consumers themselves may increasingly shape markets through AI-driven interactions; and 

➡️ Regulatory Evolution: The review will consider how financial regulators may need to adapt to ensure retail markets remain fair, safe and effective in an AI-driven environment. 

✅ Firms should monitor the review and its emerging themes, and consider how AI governance frameworks, consumer outcomes and competitive strategy may need to evolve ahead of future FCA recommendations.