We want to support the safe and responsible adoption of AI in UK financial markets.
We’re supporting firms to experiment, develop, and test AI in a way that:
- Drives innovation.
- Benefits consumers and markets, while balancing the risks.
- Supports growth and competitiveness of UK financial services.
Our regulatory approach is principles-based and focused on outcomes. We want to give firms flexibility to adapt to technological change and market developments, rather than detailed and prescriptive rules.
We do not plan to introduce extra regulations for AI. Instead, we’ll rely on existing frameworks, which mitigate many of the risks associated with AI.
We believe that with a fast-moving technology like AI, this is the best way to support UK growth and competitiveness.
How do our current rules apply?
We have frameworks in place that are relevant for using AI safely. For example:
For full details, read our AI Update.
Read our letter to the PM on growth (2025).
For support to develop AI models and solution in a safe, responsible way, visit our AI Lab.
Domestic and international partners
We’ve been working with fellow regulators and the international community to share findings and learn how AI is working.
As well as co-chairing the AI consortium with the Bank of England, we’ve been involved in research on the topics below.
How AI is helping us become a smarter regulator
Making the FCA a smarter regulator is a key pillar of our strategy for 2025 to 2030.
In our Supervision Hub, we are using predictive AI to assist our agents with real-time knowledge, and an AI voice bot to point consumers to the correct organisation when they first contact us. (This might be to the Financial Ombudsman Service, Financial Services Compensation Scheme, or to FCA staff).
We are also experimenting with large language models (LLMs) to make our processes more efficient for authorisations and supervision.
Our people remain integral, using their expertise for judgement, while AI focuses on pulling out facts and analysing unstructured text.
