The Financial Conduct Authority has launched a review into how advanced artificial intelligence could affect consumers, retail financial markets and financial regulation in the years ahead.

AI is already deeply embedded across financial services. However, rapid advances in generative, agentic and emerging forms of AI mean the next phase of development could be transformational.

The watchdog said AI has the potential to reshape markets, alter how firms compete and change the way consumers use retail financial services.

The FCA’s Sheldon 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.”

As part of the review, the FCA is seeking views on a set of interrelated themes. These include how AI may evolve over time, particularly through the development of more autonomous and agentic systems, and how such advances could affect markets and firms by changing competition, market structure and the UK’s international competitiveness.

The review will also consider the impact on consumers, both in terms of how AI influences consumer behaviour and how shifting consumer expectations may in turn shape financial markets. In addition, it will explore how financial regulators themselves may need to adapt to ensure retail financial markets continue to function effectively.

Wholesale markets and wider societal impacts fall outside the formal scope of the review, although the FCA acknowledged that developments in these areas may indirectly influence retail financial services and will be considered where relevant.

Feedback gathered through the review will inform a series of recommendations that will be reported to the FCA board in summer 2026.

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