The FCA is calling for clear, proportionate and consistent disclaimers where consumers receive AI-generated financial information or advice. Its latest comments highlight a growing issue for mortgage and financial advisers: consumers may arrive having relied on answers from general-purpose AI tools without understanding that regulated protections and redress may not apply.
The regulator is testing and monitoring AI deployments through initiatives including its AI Lab, with attention spanning consumer support, fraud prevention, agent-led services and cyber resilience. This is not a signal that advisers should avoid AI; it is a reminder that innovation must be controlled, explainable and aligned with Consumer Duty outcomes.
- Review client-facing AI content, chatbots and automated emails.
- Use prominent wording on the limits of automated information.
- Keep a clear route to qualified human advice and escalation.
- Maintain records of prompts, outputs, checks and client communications where AI informs the advice process.