FCA urges stronger regulator powers to protect consumers from AI risks

The Financial Conduct Authority’s landmark “Mills” review, which examines how artificial intelligence will reshape financial services from 2030 onward, warns that the rapid shift toward AI‑enabled offerings could magnify cyber‑crime and fraud risks for consumers. The assessment notes that firms are already moving from human‑led processes to automated, algorithm‑driven services for everyday banking, payments and investment advice, creating new vulnerabilities that existing regulatory frameworks may not fully address.

In response, the review urges ministers to strengthen the FCA’s powers, giving the regulator greater authority to intervene, enforce safeguards and oversee the deployment of AI across the sector. By enhancing oversight, the FCA aims to mitigate heightened threats while supporting responsible innovation, ensuring that the benefits of technology do not come at the expense of consumer protection.