The Mills Review: Exploring the Impact of Advanced AI on Retail Financial Markets and Consumers
The Financial Conduct Authority (FCA) has initiated a review to examine the effects of advanced AI on retail financial markets, consumers, and regulators. The FCA is interested in understanding how AI could progress in the future, potentially leading to more autonomous systems and how this could impact competition and market structures. They are also seeking insights on how consumers might be affected by AI and how the technology could shape financial markets by setting new expectations.
Moreover, the FCA is soliciting opinions on how financial regulators may need to adapt as AI advances to ensure that retail financial markets continue to function effectively. The review will be overseen by Sheldon Mills, the executive director of consumers and competition at the FCA. Feedback received during the review process will contribute to a set of recommendations that will be presented to the FCA Board in the summer of 2026, guiding the authority on how to navigate and respond to the changes brought about by AI-driven transformations.
The Mills Review is an extension of the FCA's ongoing AI initiatives, such as the AI Discussion Paper, AI Sprint, AI Live Testing, and Supercharged Sandbox supported by Nvidia. Sheldon Mills emphasized the importance of considering the potential long-term impacts of AI on financial services, highlighting the need to understand how emerging AI applications could influence consumers, markets, and firms as we look ahead to 2030 and beyond. The FCA aims to support innovation while ensuring the safe and trustworthy adoption of AI in retail financial services.
While the review primarily focuses on retail financial services, the FCA acknowledges that developments in wholesale markets and broader societal impacts could indirectly affect retail financial services and will be taken into account where relevant. Additionally, the FCA is conducting separate work to assess the impact of AI in wholesale markets, particularly through its live testing collaboration.