Only around half of advisers use technology to support Consumer Duty compliance, according to industry research, while the FCA’s consumer research shows a growing tendency to trust AI. Among younger investors surveyed, 56% said they trust AI tools, yet 44% wrongly believed AI-generated financial information is regulated.
Mortgage firms using generative AI should treat it as an assistive tool rather than an advice engine. Practical controls include:
- Human review before any client-specific recommendation or communication;
- Source checking for rates, criteria and regulatory claims;
- Audit trails showing prompts, outputs, edits and approvals; and
- Clear client disclosures on what AI can and cannot do.
The Bank of England’s continued AI engagement and the FCA’s focus on customer outcomes indicate that governance, resilience and explainability will matter as much as productivity gains.