FCA's approach to AI

The FCA’s approach to AI appears to be quite straightforward: no separate AI rulebook, at least for now.

An article published by Compliance Week reports that experts believe the UK’s existing principles-based approach to financial services regulation should remain suitable in an age of AI, provided that the regulatory framework is regularly reviewed.

That reflects the FCA’s own position. It has said that it does not currently plan to introduce additional regulations specifically for AI. Instead, firms using AI remain subject to existing frameworks, including the Consumer Duty, the Senior Managers and Certification Regime, and existing expectations around governance and controls.

There is some logic to that approach. AI is developing extremely quickly. Detailed rules written specifically around today’s technology could well become outdated surprisingly quickly. A principles and outcomes-based regime gives both firms and the regulator more flexibility as the technology evolves.

However, this should not be mistaken for a hands-off approach. The FCA is actively examining how AI could reshape financial services, including through its Mills Review, which looks ahead to 2030 and beyond. The intention appears to be to continue monitoring developments and consider whether the existing regulatory framework remains effective as AI becomes more widely adopted and increasingly sophisticated.

So, in summary, no special AI regulation for now, but plenty of watching and reviewing.

In many respects, AI is already developing faster than detailed regulation could realistically keep pace with. The FCA’s challenge will therefore be to ensure that its existing principles remain strong enough to deal with new risks as they emerge, without creating rules that are out of date almost as soon as they are written.

Sources: Compliance Week, “FCA’s regulatory approach in the age of AI will work for now, but regular reviews are necessary, warn experts”, 14 September 2026; Financial Conduct Authority, “AI and the FCA: our approach”; FCA Mills Review, July 2026.