- The Financial Conduct Authority (FCA) has published the Mills Review, predicting that artificial intelligence (AI) will fundamentally reshape financial services by 2030 and beyond.
- The review identifies four main AI-driven shifts: the transformation of firm operations, the evolution of consumer journeys, the reshaping of competition and market power, and the amplification of fraud and cyber risks.
- Sheldon Mills, FCA executive director, stated that AI will create significant opportunities for consumers, firms, and the wider economy, emphasizing the need for a roadmap to prepare for AI-driven changes.
- The review warns that AI could increase risks related to fraud, cyber security, consumer harm, and market concentration, necessitating advanced defensive capabilities from firms and regulators.
The UK Financial Conduct Authority (FCA) has released the Mills Review, forecasting that artificial intelligence (AI) will significantly transform retail financial services by 2030. The review identifies four major shifts: the transformation of firm operations, the evolution of consumer journeys, the reshaping of competition and market power, and increased fraud and cyber security risks.1
Currently, only 9% of UK adults receive traditional financial advice annually, while 30% hold life or income protection. The review suggests that AI could address these gaps, with 20% of consumers—approximately 11 million UK adults—likely to use AI capable of acting autonomously within pre-set goals. However, concerns about trust and control persist, with 16% of consumers already using AI for financial services.
FCA executive director Sheldon Mills stated, “Artificial intelligence will transform financial services by 2030. It creates significant opportunities for consumers, firms and the wider economy.” The review emphasizes that while AI can enhance efficiency and personalization, it also poses risks of fraud and cyber threats, necessitating advanced defensive measures from firms and regulators.3
The report outlines seven recommendations for the FCA, including adapting the regulatory perimeter and strengthening system-wide oversight. FCA chair Ashley Alder noted the importance of keeping pace with rapid changes in the financial landscape, emphasizing the need for a principles-based regulatory approach.
The FCA plans to launch an AI good and poor practice publication later this year, aiming to guide firms in navigating the evolving AI landscape.
“The Mills Review found that 20% of UK adults – roughly 11 million people – are likely to use AI that acts autonomously within set goals. It warns that AI-powered fraud, deepfakes, and cyber attacks will become more sophisticated by 2030, requiring firms and regulators to develop advanced defenses.”
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