UK regulator warns of "arms race" to keep up with AI use in financial services

Claims

• UK FCA executive director Sheldon Mills says regulators are in an arms race to keep up with the speed and scale of AI adoption in financial services.
• Millions of people are already using AI tools such as ChatGPT, Claude, and Gemini to make personal finance decisions.
• UK regulators may need greater powers to effectively oversee AI in financial services.
• Regulators must adopt AI themselves to monitor, detect, and tackle the risks the technology introduces to financial markets.
• The FCA is urging UK authorities to review whether major LLMs should be subject to existing financial regulation rules.