UK Regulator Warns of AI ‘Arms Race’ in Financial Services

A senior UK official has warned that regulators are in an ‘arms race’ to keep up with the growing use of artificial intelligence in financial services, as millions of people turn to AI tools for personal finance decisions. Sheldon Mills, an executive director at the Financial Conduct Authority, said the watchdog needs greater powers to manage the rapid growth of AI and called for a review of whether large language models like ChatGPT should fall under its rules. Mills added that regulators must adopt AI themselves to keep pace with the technology’s speed and scale of change, and to better monitor and tackle emerging risks.