The FCA has launched a review into how advanced AI could affect retail financial markets, regulators, and consumers, headed up by executive director Sheldon Mills.

The review will take a longer-term look at the implications of AI as it rapidly advances and will build upon the work the regulator has done on AI to date, including the AI Discussion Paper, AI Sprint, and AI Lab.

The FCA is seeking views on four angles:

  1. How AI could evolve in the future, including the development of more autonomous and agentic systems.
  2. How these developments could affect markets and firms, including changes to competition and market structure and UK competitiveness.
  3. The impact on consumers, including how consumers will be influenced by AI but also influence financial markets through new expectations.
  4. How financial regulators may need to evolve to continue ensuring that retail financial markets work well.

Wholesale markets will be out of scope as the FCA is investigating the impact of AI on wholesale markets separately, but related developments that may indirectly influence retail financial services will be considered where relevant.

Comments submitted before the 24 February 2026 deadline will feed into recommendations to be put to the FCA Board in the summer, leading to an external publication.

Mills said: “AI is already shaping financial services, but its longer-term effects may be more far-reaching. This review will consider how emerging uses of AI could influence consumers, markets and firms, looking towards 2030 and beyond.

“By taking a forward-looking view, the review will help the FCA continue to support innovation while promoting the safe and trusted adoption of AI in retail financial services.”