The FCA says it is moving from discussion to testing, assurance, monitoring and surveillance as AI becomes embedded across retail financial services. Its AI Lab is examining use cases including agent-led payments, fraud detection and consumer support, while the regulator warns that general-purpose AI tools can blur the boundary between information and regulated advice.
For mortgage and financial advisers, the practical message is clear: AI can improve research, administration, case triage and communications, but firms must retain accountable human oversight. Consumer-facing outputs should be accurate, suitably contextualised and clear about whether they constitute regulated advice. The FCA is also calling for consistent warnings where AI-generated financial information is delivered, a useful benchmark for advisers using generative AI in client journeys.
Adviser actions:
- Document AI use, approvals, data sources and human review points.
- Test prompts and outputs for suitability, bias and misleading claims.
- Make regulatory boundaries and client disclosures prominent in AI-assisted journeys.