We want to support the safe and responsible adoption of artifical intelligence in UK financial markets. Find out how our rules apply to AI.
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?
Read our AI Update publication[3]
In 2024, we published our AI Update setting out how our existing rules apply to AI.
The publication explains that an evidence-based view, one that balances both the benefits and risks of AI, will ensure a proportionate and effective approach to the use of AI in financial services.
The publication highlights frameworks in place that are relevant for using AI safely. For example:
Consumer Duty
Firms must:
- Design products and services that meet the needs of their target customers and provide fair value.
- Communicate in a way that meets the information needs of customers.
- Provide support that meets the needs of customers.
Accountability and governance
Our rules emphasise accountability for senior managers and are relevant to the safe use of AI.
For example, see our Senior Managers and Certification Regime (SM&CR)[5].
See our work on AI in the content of growth: letter to the Prime Minister[6] (2025).
For support in developing AI use cases in a safe and responsible way, visit our AI Lab[7].
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[8] with the Bank of England, we’ve been involved in research on the topics below.
- Consumer use of generative AI[9], Digital Regulation Cooperation Forum (April 2025)
- AI in capital markets: use cases, risks and challenges[10], International Organization of Securities Commissions (March 2025)
- Financial stability implications of AI[11], Financial Stability Board (January 2025)
- Consumer-facing AI in global financial services[12], Global Financial Innovation Network (November 2024)
- Regulatory approaches to AI in finance[13], Organisation for Economic Co-operation and Development (September 2024)
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.
