The Financial Conduct Authority has published The Mills Review, a board-commissioned assessment of how artificial intelligence could reshape retail financial services by 2030 and beyond. The review concludes that AI is likely to become a defining force across the sector, changing how firms operate, how consumers make financial decisions and how markets function. It identifies four main 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. The report says AI could improve access, personalisation and efficiency, while also increasing risks tied to fraud, cyber security, consumer harm and market concentration. FCA-commissioned research of more than 5,000 UK retail financial services consumers found that 20% of respondents, equivalent to about 11 million UK adults, would be likely to use AI that can act autonomously within pre-set goals, although concerns remain around trust and control. The review sets out seven recommendations for the FCA board and executive, including adapting the regulatory perimeter, strengthening system-wide oversight, monitoring the move to autonomous models, scaling the FCA's AI Lab, enabling the foundations for agentic finance, building an AI-enabled supervisory model and developing a public-interest AI-enabled financial capability service. Running in parallel, the FCA said it will publish an AI good and poor practice paper later this year based on direct engagement with firms on what is working, where challenges are emerging and where further clarity is needed.
Financial Conduct Authority2026-07-06
Financial Conduct Authority publishes retail finance AI review with seven recommendations on agentic finance and supervision
The Financial Conduct Authority has published The Mills Review, concluding that AI will reshape retail financial services by 2030 through changes to firm operations, consumer journeys, competition and fraud and cyber risk. The report says about 11 million UK adults would likely use autonomous AI within pre-set goals and recommends seven actions, including adapting regulation, scaling the FCA's AI Lab and preparing for agentic finance and AI-enabled supervision. The FCA also plans an AI good and poor practice publication later this year.