An arms race of British regulators to manage artificial intelligence in financial services

Regulators in the UK have warned of an "arms race" to control and monitor the use of artificial intelligence in financial services. Millions of people use this technology for personal financial decision-making, leading to rapid and widespread changes in the sector. Sheldon Mills, an executive director at the UK Financial Conduct Authority (FCA), told the Financial Times that regulators need more powers to oversee the rapid growth of AI technologies like ChatGPT, Claude, and Gemini, and to decide on rules for their use. He emphasized that regulators themselves must use AI to manage the pace of change, identify risks, and respond promptly.