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

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