The Financial Conduct Authority has initiated the Mills Review to evaluate how emerging autonomous AI systems could reshape retail financial services, balancing innovation with safeguards amid technological advancements and evolving market dynamics.
The Financial Conduct Authority has launched the Mills Review, a forward-looking assessment of how advanced artificial intelligence may reshape retail financial services over the coming decade. Led by Sheldon Mills, the exer...
Continue Reading This Article
Enjoy this article as well as all of our content, including reports, news, tips and more.
By registering or signing into your SRM Today account, you agree to SRM Today's Terms of Use and consent to the processing of your personal information as described in our Privacy Policy.
cise will examine the technological, commercial, consumer and regulatory dimensions of increasingly capable AI systems, with particular attention to the rise of agentic models that can operate with limited human oversight.
According to the FCA, the review builds on the regulator’s prior AI work, including its AI Discussion Paper, the AI Sprint and the AI Lab, as well as live testing programmes and the Supercharged Sandbox supported by NVIDIA. The review will probe how AI technologies might evolve, how firms and market structures could shift, how consumer behaviour and expectations may change, and how supervision and policy approaches might need to adapt. The FCA is inviting industry feedback on these themes, with responses due by 24 February 2026, and plans to bring recommendations to its board in summer 2026.
Sheldon Mills said, “AI is already shaping financial services, but its longer-term effects may be more far-reaching. This review will consider how emerging uses of AI could influence consumers, markets and firms, looking towards 2030 and beyond.” He added, “By taking a forward-looking view, the review will help the FCA continue to support innovation while promoting the safe and trusted adoption of AI in retail financial services.”
External analysis underscores both the commercial upside and the risks that the FCA is grappling with. McKinsey highlights how agentic AI could transform retail and SME banking by automating routine financial tasks, optimising cashflows and personalising decision-making, potentially turning inertia into continuous, agent-driven account management. At the same time, McKinsey flags concerns around errors, liability, transparency and user trust that could accompany autonomous agents.
Legal and risk advisers have echoed the need for robust governance. Torys LLP warns that agentic systems, while delivering efficiency gains, increase the potential for operational failures, data breaches and gaps in oversight, underscoring the need for clear accountability frameworks. Similarly, specialist commentators note regulatory trends that place firms squarely responsible for the conduct of autonomous tools they deploy or source from third parties, a stance reflected in recent industry debate about 2026 accountability expectations.
Market commentators also point to broader systemic questions. The World Economic Forum has argued that agentic AI can boost inclusion and streamline compliance but raises challenges for privacy, market stability and governance that will require coordinated responses from firms and regulators. Formiti has warned of an accountability crisis unless continuous monitoring and enforceable safeguards are put in place to prevent unsupervised agents from amplifying errors or creating new forms of market disruption.
For consumers, the potential for hyper-personalised services and automated financial management presents obvious benefits but also new vulnerabilities. Industry data and expert commentary indicate risks around opaque decision-making, the dilution of human oversight, and pressure on consumer choice if a small number of firms dominate agentic offerings. The FCA’s review will therefore assess how changing expectations for real-time, personalised support might affect competition and consumer outcomes.
Regulatory responses will need to balance support for innovation with measures to preserve market integrity and consumer protection. The FCA’s stated approach remains principles-based and outcomes-focused, leveraging initiatives such as the AI Lab to help firms develop models responsibly while avoiding the immediate imposition of AI-specific rules. Nevertheless, the Mills Review signals a readiness to consider how supervisory models and policy tools might be adjusted to address the distinctive features of autonomous AI, including traceability, explainability and accountability.
The FCA has acknowledged that work on wholesale markets and wider societal consequences sits outside the formal scope of this retail-focused review, although it recognises the potential for developments in those areas to feed back into consumer markets. Stakeholder input will shape the final recommendations the regulator presents to its board, which, once published, are intended to guide firms, policymakers and consumers through the next phase of digital change.
Source: Noah Wire Services
