UK Financial Regulator Warns of ‘Arms Race’ to Manage AI’s Growing Role in Finance

A senior UK regulator has warned that authorities are locked in an “arms race” to keep pace with the rapid adoption of artificial intelligence in financial services, as millions of consumers now use AI tools for personal finance decisions. Sheldon Mills, an executive director at the Financial Conduct Authority, stated that the watchdog would need greater powers to oversee the technology and called on UK authorities to consider whether chatbots like ChatGPT, Claude, and Gemini should fall under existing rules. Speaking ahead of an FCA-commissioned report he authored on AI’s impact, Mills emphasized that regulators must adopt AI themselves to match the speed and scale of change and to effectively monitor, detect, and address emerging risks.