FCA seeks industry input on AI, relies on existing rules
The Financial Conduct Authority (FCA) is engaging with the financial services industry to shape its approach to Artificial Intelligence (AI). The regulator will rely on existing frameworks rather than introducing new regulations for AI.
No new rules, but clear expectations
The Financial Conduct Authority has affirmed its stance against introducing new regulations specifically for Artificial Intelligence in financial services.
"We have been clear that we are not going to introduce new regulations for AI," the regulator stated, emphasizing reliance on existing frameworks such as the Consumer Duty and the Senior Managers and Certification Regime (SM&CR) to ensure safe and responsible AI adoption.
The FCA is actively engaging with firms on critical topics including AI oversight, model testing, outcome monitoring, fair customer treatment, and the explainability of AI-driven decisions.
To gather direct feedback and examples of good and poor practice, the FCA has launched its AI Input Zone online survey, which closes on June 19, 2026.
This initiative aims to build an evidence-led view of AI's practical implications.
AI Lab fosters innovation and oversight
The AI Input Zone is part of the FCA's broader AI Lab, an initiative deepening understanding of AI's risks and opportunities for UK consumers and markets.
The AI Lab includes the Supercharged Sandbox, offering high-performance computing for early-stage AI ideas, and AI Live Testing, providing a safe environment for real-world system trials with regulatory oversight.
The AI Spotlight showcases firms' AI experiments, and past events like the AI Sprint and AI Small Firms event have informed the regulatory approach for smaller entities.
Separately, the independent Mills Review, focusing on AI's long-term impact, is expected this summer.
Engagement over regulation
The FCA's strategy signals a pragmatic, adaptive stance, prioritizing industry collaboration over immediate, prescriptive rules.
This approach leverages existing robust frameworks, aiming to foster innovation without stifling it with premature regulations.
However, its effectiveness hinges on active industry participation and the FCA's ability to translate diverse learnings into clear, actionable guidance for the evolving AI landscape.