UK regulator warns of 'arms race' to keep pace with AI adoption in financial services

A senior UK financial regulator has warned that authorities are in an 'arms race' to keep up with the rapid adoption of artificial intelligence in financial services, as millions of people use AI tools for personal finance decisions. Sheldon Mills, an executive director at the Financial Conduct Authority (FCA), said the watchdog needs greater powers and urged a review of whether large language models like ChatGPT, Claude, and Gemini should fall under its rules. Speaking ahead of an FCA-commissioned report on AI's impact, Mills stressed that regulators must embrace AI themselves to monitor and tackle risks at the 'speed, pace, and scale of change' the technology brings.