Jessica Rusu, chief data, information and intelligence officer at the UK Financial Conduct Authority, said in a speech that artificial intelligence is reshaping financial services across both retail and wholesale markets. In retail finance, the FCA has commissioned the Mills Review to study how AI is affecting consumer-facing financial services and said it is already seeing a shift toward "agentic finance," citing Meta's Muse as an example. In wholesale markets, Rusu said AI is accelerating analysis, trading, surveillance and decision-making, and that the FCA is moving six of seven recommendations straight into practical work. She also warned that more consumers are turning to general-purpose large language models such as ChatGPT, Gemini and Claude for financial information and investment guidance, blurring the line between regulated and unregulated activity. Survey data cited in the speech showed that four in five less-experienced investors aged 18 to 40 have used AI to support investing, while only 40% understood that they would have no recourse if advice from a general AI tool caused problems. The FCA is urging AI providers to use clear, appropriate and consistent disclaimers and said it will use its AI Lab to support the International Organization of Securities Commissions' first TechSprint.
Jessica Rusu, chief data, information and intelligence officer at the UK Financial Conduct Authority (FCA), said in a speech that AI is reshaping financial services.
In retail finance, the FCA has commissioned the Mills Review to examine how AI is affecting retail financial services. Rusu said the regulator is also seeing a shift toward "agentic finance," citing the launch of Meta's Muse.
In wholesale markets, AI is speeding up firms' analysis, trading, surveillance and decision-making processes, she said. Rusu added that the FCA is putting six of seven recommendations into immediate practical work.
Consumers are turning to general-purpose AI tools for financial information
Rusu said more consumers are using general-purpose large language models such as ChatGPT, Gemini and Claude to obtain financial information and investment advice. That trend is blurring the boundary between regulated and unregulated activity.
According to survey findings cited in the speech, four in five less-experienced investors aged 18 to 40 have used AI to assist with investing. But only 40% of consumers correctly understood that if problems arose from following advice generated by a general AI tool, they would have no recourse.
FCA asks AI providers to add clear disclaimers
The FCA is calling on AI providers to use clear, appropriate and consistent disclaimers so consumers can better understand the limits of financial information and advice generated by their models.
Rusu also said the FCA will use its AI Lab to support the first TechSprint by the International Organization of Securities Commissions (IOSCO), aimed at helping investors identify scams, verify information and question unreliable AI outputs.
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