FCA launches review into AI’s future in finance
The UK’s Financial Conduct Authority (FCA) has launched a wide-ranging review into how artificial intelligence could reshape retail financial services in the years ahead. Announced on 27 January and led by Executive Director Sheldon Mills, the initiative will explore how AI might transform market dynamics, consumer behaviour and regulatory frameworks through to 2030 and beyond.
Notably, the review won’t result in new AI-specific rules, instead, it will assess how existing, principles-based regulation may need to evolve. Four themes are on the table: future AI developments, market impacts, consumer influence, and the role of regulators. A report to the FCA board is due this summer.
As AI becomes more embedded in financial services, not just in back-end automation, but in how consumers and firms interact with data, the question is no longer if it will shape decision-making, but how. Unlocking its full potential depends on access to consistent, high-quality, structured information. Without that, even the most sophisticated AI systems risk drawing flawed conclusions or reinforcing opacity.
This is where digital reporting with XBRL comes into play. Structured data enables transparency, auditability and machine-readability, all of which are essential for AI tools, including large language models, to operate responsibly and effectively. As we explore in our accompanying piece on LLMs, ensuring that financial data is both accessible and meaningful to machines is critical to building trust and accountability in an AI-powered future.
Without rock solid data foundations, the promise of AI to enhance competition, protect consumers and improve regulatory oversight will fall short.
Feedback is invited until 24 February. Read more on the FCA’s website.
