FCA Report Flags Trust Gap as 26% of Investors Use AI for Advice

A further 20% of consumers said they are likely to use AI that can act autonomously within pre-set parameters. "Trust, control and access are what must be right before consumers adopt AI finance agents," the report said.

The warning came with a list of risks. The report said AI could amplify conduct risks – where firms deploy tools that steer consumers toward unsuitable products. It also warned of concentration risks, as control of the AI layer "may become a major source of market power," potentially shifting the customer relationship away from financial services providers. Cybersecurity was flagged as an additional vulnerability.

The FCA's report made several recommendations for the regulator itself. It called for enabling "the foundations for agentic finance" and building an AI-enabled supervisory model. A separate recommendation asked for an AI service to enhance financial capabilities.

For financial firms, the report said AI "could lower barriers to entry, enable new distribution channels and allow digital-native firms to scale rapidly." At the same time, the role of industry personnel is expected to evolve – from operators close to each decision toward collaborators, approvers and eventually observers who monitor outcomes.

Sheldon Mills, the FCA's executive director, said the report sets out a roadmap for how regulators and government can prepare for the next phase of AI-driven change. "Artificial intelligence will transform financial services by 2030," he said.