The Financial Conduct Authority (FCA) has launched a review into the use of advanced artificial intelligence across UK financial services, including applications linked to trading, risk management and digital asset activity.
The review, led by FCA executive director Sheldon Mills, will examine how AI could affect markets and firms, including competition and market structure.
“As I begin this review, the technological landscape is evolving at a remarkable pace. It is entirely plausible that we will see widespread use of agentic AI systems, neuromorphic computing and quantum capability,” Mills said.
“These technology changes will take place in the context of the growth of digital finance, including blockchain and smart contracts, tokenisation and digital assets.”
The move follows a report published by the parliamentary Treasury Committee on January 20, which urged financial regulators, including the FCA, to move away from a “wait and see” approach to AI.
The committee said the FCA should publish guidance by the end of the year on how consumer protection rules apply to AI and how much senior managers need to understand the systems they oversee.
Feedback will inform recommendations to be presented to the FCA board in summer 2026, with comments due by February 24, according to FT Adviser.
