The FCA’s latest comments on AI, alongside the mortgage and open-finance policy sprint, underline a clear message for advisers and lenders: more data is not enough. Data used in affordability, sourcing, underwriting or customer support must be reliable, explainable and appropriately governed.
For mortgage firms deploying generative AI or automation, the priority is to retain meaningful human oversight, clear audit trails and effective customer disclosures. The FCA is particularly alert to the blurred boundary between general-purpose AI information and regulated financial advice, so advisers should ensure AI-assisted client communications do not overstate certainty or stray beyond their permissions.
- Adviser focus: document AI use, validate outputs and maintain a clear human review point.
- Consumer focus: make the limits of AI-generated information clear, especially where product or borrowing recommendations may be inferred.