FCA executive director Sheldon Mills said regulators are in an "arms race" to keep pace with AI adoption in financial services and need broader powers, the FT reported. He urged UK regulators to assess whether large language models such as ChatGPT, Claude and Gemini should be brought within regulatory rules. Mills said regulators must themselves adopt AI to match the technology’s "speed, tempo and scale" and to "monitor, detect and respond to risks." A report by Mills warned that heavy personali

FCA executive director Sheldon Mills said regulators are in an "arms race" to keep pace with AI adoption in financial services and need broader powers, the FT reported. He urged UK regulators to assess whether large language models such as ChatGPT, Claude and Gemini should be brought within regulatory rules. Mills said regulators must themselves adopt AI to match the technology’s "speed, tempo and scale" and to "monitor, detect and respond to risks." A report by Mills warned that heavy personalization can improve product fit but may also produce algorithmic bias, opaque pricing and targeted manipulation. It recommends the FCA conduct a review within three to six months of risks from firms providing financial services outside the regulatory perimeter and potential consumer harm from rising use of AI in personal finance.