Britain’s financial regulator has been urged to consider bringing popular artificial intelligence tools like ChatGPT, Claude and Gemini under its regulatory ambit.
The AI platforms play a growing role in consumers’ financial decisions, according to a review commissioned by the Financial Conduct Authority (FCA).
According to the FCA’s Executive Director, Sheldon Mills, one of the conclusions of the research is that the percentage of UK users trusting general-purpose AI systems for financial advice exceeds 25%.
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However, many of them are unaware of the fact that these systems are not subject to the same level of protection available to regulated advisers. This results in calls for reconsideration of the fitness of regulating systems in light of the ever-growing role of AI in finance.
The report does not recommend doing anything urgent concerning regulations. Rather, it suggests that the FCA should define the scope of its regulation for the next three to six months.
As far as the report is concerned, it has also talked about the different risk factors to the financial sector as a whole.
It shows that as banks, insurance firms and investment companies move forward with the implementation of AI in the financial system, it seems that there are going to be a number of vulnerability factors that might happen, such as having one point of failure, operational issues and cyber attacks when anything regarding the AI technology does not work.
Ashley Alder, chairperson of the FCA, said regulators must keep pace with the rapid evolution of AI while maintaining an outcomes-focused approach to oversight.
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The review comes as financial regulators around the world grapple with the risks posed by increasingly sophisticated AI systems, including autonomous “agentic” AI that can perform tasks with limited human intervention.
While AI has the potential to make financial services more accessible and efficient, the review warns that stronger safeguards may be needed to ensure innovation does not outpace consumer protection and financial stability.
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