The UK’s Financial Conduct Authority (FCA) published a landmark review on Monday that proposes recommendations to regulate the impact of artificial intelligence (AI) on the financial decisions made by consumers.

The review, titled the Mills Review, anticipates that both consumers and firms will start delegating “more financial decision-making to AI systems,” including for agreements, initiating transactions, and executing decisions “within agreed parameters.” One of the key findings of the review outlined that while AI can help bridge advice gaps and “support growth,” there remain risks “associated with fraud, cyber security, and consumer harm.” Conducting the review, Sheldon Mills highlighted that “AI can also amplify risks: bias, discrimination, exclusion, opaque decision-making (particularly when multiple AI models interact), misleading or hallucinatory advice and erosion of consumer trust.”

The review stated that presently, one in five adults in the UK are “already open to AI making decisions for them,” particularly when decisions feel “complex or high stakes.” It found that roughly 26 percent of the population “trust general-purpose tools such as ChatGPT, Claude or Gemini for financial advice” with little awareness that such platforms provide no “formal routes to recourse” or protections.

Overall, the Mills Review identified four areas that it anticipates will be impacted by AI in the financial sector: “the transformation of firms,” “new consumer journeys,” “a reshaped competition landscape,” and “amplified financial crime and cyber risk.” The FCA projected the shift in how consumers and firms consult AI to take place by 2030.

The Mills Review put forth seven “priority” recommendations to be considered by the FCA Board. It recommended that any transitions to autonomous AI models be monitored and that regulatory frameworks and perimeters be adapted and secured. The review called for the strengthening of “system-wide coordination and oversight,” the scaling up of the FCA’s AI Lab to enable it to support AI models and innovation for agentic finance, and an “AI-enabled agentic supervisory model” to be built and adopted.   Finally, it recommended that a trusted “public-interest AI-enabled financial capability service” be developed.

The FCA announced, in the press release, that it will launch an AI “good and poor practice publication” in late 2026.

LEXINGTON, Ky. (WKYT) – The Fayette County Public Schools Board of Education approved a one-year audit contract capped at $131,750 plus $225 per hour during a virtual meeting Monday, along with a new finance director job description.

The contract is with Mauldin & Jenkins Certified Public Accountants, an Atlanta-based firm, and covers the 2025-26 fiscal year and the restatement of the 2024-25 fiscal year and ancillary services through FY 2029-2030. The work is set to be completed by Nov. 15.

The board approved the contract in a 5-0 vote.

Audit contract details

Interim Chief Financial Officer Kyna Koch said the cost is already accounted for in the district’s budget.

“And is actually less than we expected given our current situation — we were thrilled with the bid,” Koch said.

Koch said she believes this is Mauldin & Jenkins’ first school district audit in Kentucky, but that the firm works with school districts of more than 100,000 students throughout the Southeast.

“Quite frankly when I spoke to the folks at KDE they were thrilled because we’re running kind of short of auditors who want to do school district audits — so all around I think this was a win-win for everyone,” Koch said.

New finance director position

The board also approved a new job description for the position of Director of Finance. Acting Superintendent Dr. Bill Bradford said the title will replace two associate director positions.

“Which will not only save the school district money but it’s also going to streamline our work and align internal controls to make room for a more efficient unit,” Bradford said.

Koch said the position will be posted as soon as possible following the board’s approval.

Closed session

The board went into closed session for more than an hour to discuss pending investigations that could lead to employee discipline. When the board returned, it took no action and adjourned the meeting.

According to Bloomberg, the review recommends that the FCA evaluate whether large language models developed by companies including OpenAI and Anthropic should fall within the regulator’s remit if they play an increasingly significant role in consumer financial services. The report was led by Sheldon Mills, an executive director at the FCA, and was published on Monday.

The review concludes that the UK’s current activity-based regulatory framework does not require a wholesale overhaul. However, it warns that continued advances in AI capabilities and wider adoption of AI-powered financial products could expose gaps in existing oversight if technology providers increasingly influence regulated financial activities, Bloomberg reported.

Among its recommendations, the report calls for a review of the FCA’s regulatory perimeter and suggests strengthening the regulator’s authority under the UK’s Critical Third Parties regime. Such changes could allow the watchdog to exercise greater oversight of technology providers whose services have become integral to financial markets, including major AI developers and cloud infrastructure companies.

The recommendations reflect growing concern that artificial intelligence is reshaping how financial products are designed, distributed and used. Banks and other financial institutions are increasingly deploying generative AI to support customer service, fraud detection, compliance functions and financial guidance, while consumers are also turning directly to general-purpose AI tools for financial information.

The review also raises broader competition and market structure issues. As financial institutions rely on a relatively small number of AI model developers and cloud computing providers, operational dependencies could become concentrated among a handful of technology companies. That concentration may create systemic risks if disruptions or failures affect widely used platforms, while also potentially shifting market power away from regulated financial institutions toward large technology providers.

Those concerns mirror recommendations made earlier this year by the UK Parliament’s Treasury Committee, which urged the government to designate major AI and cloud providers as Critical Third Parties, arguing that regulators need stronger supervisory tools as digital infrastructure becomes increasingly central to financial stability.

The FCA launched the Mills Review in January to examine how artificial intelligence could transform retail financial services by the end of the decade. The consultation considered AI’s impact on competition, consumer behavior, market structure and the regulatory framework, with the aim of identifying whether financial regulation should evolve alongside technological change.

According to Bloomberg, the FCA will now consider the report’s recommendations, including whether its regulatory responsibilities should be expanded to reflect the growing influence of general-purpose AI systems in financial services. Any changes to the regulator’s statutory powers would require action by the UK government and would form part of broader efforts to balance innovation, consumer protection, financial stability and effective competition as AI adoption accelerates.

Source: Bloomberg