The Financial Conduct Authority (FCA) has launched a new review into the implications of advanced artificial intelligence (AI) on consumers, retail financial markets and regulators.

The Mills Review, led by the FCA’s executive director, Sheldon Mills, will aim to build on the regulator’s existing work on AI.

AI is already embedded across financial services, and the FCA suggested that rapid advances in generative, agentic and emerging forms of the technology mean the next phase of change could have the power to reshape markets, change the way firms compete and how consumers use retail financial services.

“AI is already shaping financial services, but its longer-term effects may be more far-reaching,” Mills commented. “This review will consider how emerging uses of AI could influence consumers, markets and firms, looking towards 2030 and beyond.”

The FCA said it would seek views on four themes, covering how AI could evolve in the future, including the development of more autonomous and agentic systems, as well as how these developments could affect markets and firms, including changes to competition and market structure.

Other themes under review include the impact on consumers, including how they will be influenced by AI but also influence financial markets through new expectations, as well as how financial regulators may need to evolve to ensure financial markets keep working well.

“By taking a forward-looking view, the review will help the FCA continue to support innovation while promoting the safe and trusted adoption of AI in retail financial services,” Mills added.

Senior risk director at financial services consultancy Broadstone, Richard Pinch, commented that the Mills Review is a “clear signal that regulators are looking beyond today’s use of AI”.

“As AI becomes more embedded in customer interactions, decision-making and operational processes, the regulatory focus must by necessity shift to governance and accountability to protect consumer outcomes,” Pinch said.

“The challenge across the market will be to demonstrate that AI-driven models and tools align with the ethos of Consumer Duty as they evolve. Those that build strong oversight frameworks now will be better placed to innovate with confidence while meeting the FCA’s expectations.”

The FCA is inviting feedback to shape a series of recommendations, which it plans to report in summer 2026. The deadline for these comments is Tuesday 24 February.

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