The unchecked rise of artificial intelligence poses significant threats to the financial system, according to Financial Conduct Authority director Sheldon Mills. The FCA's Mills Review warns that AI could amplify risks including fraud, cyber security threats, consumer harm, and market concentration by 2030.
The rapid advancement of artificial intelligence presents significant risks to the financial system, including increased fraud, cyber threats, and potential market concentration, impacting consumers and financial stability.
The Financial Conduct Authority's Mills Review, published on July 6, 2026, warns that artificial intelligence will reshape retail financial services by 2030 and could amplify risks such as fraud, cyber security threats, consumer harm, and market concentration. The review, prepared by FCA director Sheldon Mills, maps how AI may change firm operations, consumer use of services, and market competition over the next decade. It acknowledges potential benefits like improved access, personalization, and efficiency, but highlights that the scale and speed of harms could grow with autonomous AI models. Research cited in the review indicates that approximately 11 million UK adults, or one in five, are likely to use AI with autonomous capabilities. The report also addresses consumer concerns about trust and control of AI tools. A joint statement from the Bank of England, FCA, and HM Treasury in May 2026 highlighted that frontier AI models' cyber capabilities already exceed those of skilled practitioners in speed, scale, and cost, posing significant threats to firms' safety, soundness, customers, market integrity, and financial stability. The authorities urged regulated firms and financial market infrastructures to take active steps in governance, investment, risk management, third-party management, protection, and response and recovery to address these risks.
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