FCA Official Warns of 'Arms Race' to Regulate AI in Financial Services

Sheldon Mills, an executive director at the Financial Conduct Authority, warned regulators face an 'arms race' to keep up with artificial intelligence use in financial services, as millions rely on the technology for personal finance decisions. He called for greater regulatory powers and urged UK authorities to review whether large language models like ChatGPT should fall under their rules. The FCA-commissioned report underscores that regulators must embrace AI themselves to monitor, detect, and address risks at the speed and scale of change.