The Financial Conduct Authority has warned that artificial intelligence is reshaping how consumers encounter financial information, with general‑purpose AI tools increasingly acting as the first point of contact before regulated firms.
Speaking at Bloomberg’s UK Policy Series on Monday, FCA chief data, information and intelligence officer Jessica Rusu said: “Consumers are turning to general-purpose large language models… for financial information and advice.” She added that “warnings may be more effective at the point where AI-generated financial information is delivered”, calling for clearer and more consistent disclaimers from AI providers.
Rusu said younger investors are particularly exposed, noting that “only 40% of consumers correctly recognise that there is no recourse if something goes wrong after acting on advice from a general-purpose AI tool.”
The FCA’s review of firm testing highlights several communications risks. “We have seen poor practice too: firms developing AI tools without a clearly defined need, excluding vulnerable consumers by default, overstating capabilities, or deploying automated customer journeys without sufficient testing,” Rusu said. She warned that some firms are retrofitting governance after deployment: “That is the wrong way around.”
She also urged firms to strengthen operational resilience as AI systems become more autonomous. “Plan for failure. Maintain fallback options,” she said, adding that significant AI failures and near‑misses should be reported under existing incident rules.
Rusu said the FCA is adapting its own supervisory model using AI tools for market surveillance, AML oversight and dynamic data collection. “AI is moving faster than any regulatory framework was designed,” she said. “The future of finance is being built now.”