FCA review warns agentic AI could reshape UK retail financial services by 2030, sets out seven regulatory steps

The Financial Conduct Authority on Monday published a board-commissioned review warning that artificial intelligence, particularly more autonomous “agentic” systems, is likely to reshape UK retail financial services by 2030 and beyond. The clearest sign of how quickly that shift could reach consumers came from the regulator’s own research: 20% of people — about 11 million UK adults, by the FCA’s estimate — said they would be likely to use AI that can act autonomously within pre-set goals.

The review matters because it is not just a forecast. It sets out seven regulatory and supervisory steps for the FCA’s board and executive to consider now as AI spreads through consumer finance. The watchdog said AI could widen access to financial services, improve personalisation and boost efficiency, while also increasing fraud, cybersecurity, consumer-harm and market-concentration risks. The recommendations are not immediate rule changes.

The report, “AI and the future of retail financial services (The Mills Review),” was led by Sheldon Mills, an FCA executive director, and commissioned by the FCA Board. The FCA said it was “the first work of its kind initiated by a regulator globally.”

It identifies four broad shifts that AI is likely to drive across retail finance. Firms’ operations are expected to change as AI tools take on more internal work. Consumer journeys are likely to evolve as digital assistants move from offering suggestions to carrying out tasks within agreed limits. Competition and market power could also be reshaped, including through concentration and dependencies on a smaller number of suppliers. At the same time, the report said, fraud and cyber risks are likely to be amplified.

For consumers, “agentic” AI in the review means systems that do more than recommend products or next steps. Instead, they can act autonomously within goals or delegated parameters set by the user, such as helping manage spending, savings or other financial decisions. That promise may appeal to many customers, but the FCA’s consumer research suggests it also raises basic questions about who stays in control.

The regulator commissioned Yonder Consulting to survey 5,026 UK retail financial services consumers online in April 2026, using quotas intended to make the sample representative. Alongside the headline finding that 20% would be likely to use autonomous AI tools, the FCA said consumers expressed concerns about trust and control. The underlying research pointed to worries over accountability, misuse of personal and financial data, and whether people would have clear protections or recourse if something went wrong.

“Artificial intelligence will transform financial services by 2030,” Mills said in the FCA press release. “It creates significant opportunities for consumers, firms and the wider economy. This report sets out a roadmap for how industry regulators and government can prepare for the next phase of AI-driven change in our world-leading financial services sector.”

The seven recommendations for consideration by the board and executive are broad but pointed: secure and adapt the regulatory perimeter; strengthen system-wide coordination and oversight; monitor the shift toward autonomous models and adapt regulatory frameworks; expand the FCA’s AI Lab to support innovation; enable the foundations for agentic finance; build and adopt an AI-enabled, agentic supervisory model; and develop a trusted, public-interest AI-enabled financial capability service.

The review follows work launched by the FCA in January 2026 to examine the implications of advanced AI for consumers, retail financial markets and regulators. It draws on 140 written submissions as well as meetings, panels and roundtables involving financial services firms, technology companies, academics, consumer groups and international stakeholders. It also builds on the FCA’s earlier AI work, including its AI Lab, testing programs and discussion papers.

Ashley Alder, the FCA chair, said the regulator’s existing approach to AI has relied on principles-based regulation, including the Consumer Duty and the Senior Managers Regime. Later this year, the FCA said, it will publish an “AI good and poor practice” document.