Mills Review sets out seven recommendations for regulators and firms
The Financial Conduct Authority (FCA) has published a review examining how artificial intelligence (AI) could alter retail financial services for consumers, providers, markets and regulators over the next decade and beyond.
The report, known as the Mills Review, was led by FCA executive director Sheldon Mills and commissioned by the regulator's board. The FCA said it is the first study of its kind undertaken by a financial regulator anywhere in the world.
Drawing on input from across the financial services sector, the review identifies four significant shifts that AI is expected to bring: changes to how firms operate; new patterns in consumer decision-making; a restructuring of competition and market power; and heightened exposure to fraud and cyber threats.
According to the report, demand for autonomous AI tools in personal finance already exists. Research commissioned by the FCA found that around a fifth of people, equivalent to 11 million adults in the UK, would consider using AI systems capable of acting independently within defined parameters. However, the same research showed that consumers remain wary about trust and oversight of such technology.
The review concludes that AI is set to become a central influence on retail financial services, altering firm operations, consumer decision-making and the functioning of markets. It notes that while AI could widen access, improve personalisation and increase efficiency, it may also heighten risks tied to fraud, cyber security, harm to consumers and concentration of market power.
The Mills Review explores how AI could reshape retail financial services for consumers, firms, markets and regulators.
— Financial Conduct Authority (@TheFCA) July 6, 2026
The findings and recommendations from the independent report build on the FCA's strong foundations and how we can harness AI to deliver better outcomes for…
“Artificial intelligence will transform financial services by 2030,” Mills said. “It creates significant opportunities for consumers, firms and the wider economy. This report sets out a roadmap for how industry regulators and government can prepare for the next phase of AI-driven change in our world-leading financial services sector.”
The Mills Review sets out seven recommendations for the FCA board and executive to consider. These include securing and adapting the regulatory perimeter, and strengthening coordination and oversight across the system. The review also calls for tracking the shift towards autonomous models and adjusting regulatory frameworks accordingly, along with expanding the FCA's AI Lab to support innovation in AI models and systems across financial services.
Further recommendations cover establishing the groundwork for agentic finance, developing and adopting an AI-enabled, agentic approach to supervision, and creating a trusted, public-interest AI-enabled financial capability service.
“The Board is enormously grateful to Sheldon for the rich, comprehensive report he's delivered,” said Ashley Alder, chair at the Financial Conduct Authority. “His work anticipates the fundamental change agentic AI will bring to financial services. It highlights how consumers and firms can reap significant potential benefits as well how risks can be managed.
“As is clear in the report, we need to keep pace with a rapidly changing environment and the principles-based, outcomes focussed approach we've taken on AI – relying on the Consumer Duty and Senior Managers Regime – has been critical to us doing so. The recommendations build on work the FCA has been doing – not least allowing firms to test their use of AI with us – and our own use of AI to be a smarter regulator, more efficient and effective.”
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