FCA's landmark AI review sees autonomous finance reshaping retail markets by 2030

The UK's Financial Conduct Authority (FCA) has published The Mills Review, a landmark assessment of how artificial intelligence is expected to transform retail financial services by 2030, while calling for regulatory changes to support innovation and manage emerging risks.

Commissioned by the FCA Board and led by Executive Director Sheldon Mills, the review examines the long-term impact of AI on consumers, firms, markets, and regulators. The report concludes that AI will become a defining force across the financial sector, reshaping business operations, customer interactions, competition, and market oversight.

According to the review, advances in AI are expected to automate firm operations, enable increasingly personalized financial services, alter competitive dynamics between established institutions and technology-driven entrants, and amplify fraud and cybersecurity risks. The FCA noted that while AI could improve access to financial services and operational efficiency, it could also increase market concentration and create new consumer protection challenges.

Consumer research commissioned by the regulator found growing interest in autonomous, or "agentic," AI. Around one in five UK adults—equivalent to approximately 11 million people—said they would be willing to use AI capable of making financial decisions within predefined limits, although concerns over trust and user control remain significant.

The review sets out seven recommendations for the FCA, including adapting regulatory frameworks for AI-powered financial services, strengthening coordination across regulators, expanding the FCA's AI Lab, supporting the development of agentic finance, and increasing the regulator's own use of AI in supervision.

Commenting on the report, Sheldon Mills said AI presents significant opportunities for consumers, firms, and the wider economy, but regulators, industry, and government must prepare now for the next phase of AI-driven change. FCA Chair Ashley Alder added that the recommendations build on the regulator's existing principles-based approach, including the Consumer Duty and Senior Managers Regime, while reinforcing ongoing initiatives such as AI testing programmes and regulatory sandboxes.

The FCA said it will also publish separate guidance later this year outlining examples of good and poor AI practices observed across the financial services industry.