UK Financial Regulator Warns of 'Arms Race' to Keep Pace with AI in Finance

Sheldon Mills, an executive director at the Financial Conduct Authority, warned that regulators face an 'arms race' to keep up with the rapid adoption of artificial intelligence in financial services, noting that millions of people now use the technology for personal finance decisions. He called for greater regulatory powers and urged UK authorities to review whether large language models like ChatGPT, Claude, and Gemini should be subject to FCA rules. Speaking ahead of an FCA-commissioned report on AI's impact, Mills stressed that regulators must embrace AI themselves to monitor, detect, and tackle risks at the 'speed, pace, and scale of change' the technology brings.