Led by Financial Conduct Authority (FCA) executive director Sheldon Mills and commissioned by the FCA Board, the newly published Mills Review is the first work of its kind initiated by a regulator globally.
Drawing on views from across the financial services landscape, the report identifies four major AI‑driven shifts likely to impact retail financial services: the transformation of firm operations; the evolution of consumer journeys; the reshaping of competition and market power; and the amplification of fraud and cyber risks.
The report finds there is already consumer appetite for the use of agentic AI in personal finance, with research commissioned by the FCA showing that a fifth of people (equivalent to 11 million UK adults) are likely to use AI that can act autonomously within pre-set goals. But consumers in the survey are concerned about trust and control of AI.
The Review concludes that AI is likely to become a defining force in retail financial services, transforming how firms operate, how consumers make financial decisions and how markets function. While AI has the potential to improve access, personalisation and efficiency, it could also amplify risks associated with fraud, cyber security, consumer harm and market concentration.
Executive director Sheldon Mills said:
“Artificial intelligence will transform financial services by 2030. It creates significant opportunities for consumers, firms and the wider economy. This report sets out a roadmap for how industry regulators and government can prepare for the next phase of AI-driven change in our world-leading financial services sector.”
Key recommendations
The Mills Review also outlines seven recommendations for the FCA Board and Executive to consider, which are as follows:
- Secure and adapt the regulatory perimeter.
- Strengthen system-wide coordination and oversight.
- Monitor the transition to autonomous models and adapt regulatory frameworks.
- Scale up the FCA’s AI Lab to support AI models and system innovation in financial services.
- Enable the foundations for agentic finance.
- Build and adopt an AI-enabled agentic supervisory model.
- Develop a trusted public-interest AI-enabled financial capability service.
Ashley Alder, Chair of the FCA, said:
“The Board is enormously grateful to Sheldon for the rich, comprehensive report he’s delivered. His work anticipates the fundamental change agentic AI will bring to financial services. It highlights how consumers and firms can reap significant potential benefits as well how risks can be managed.
“As is clear in the report, we need to keep pace with a rapidly changing environment and the principles-based, outcomes focussed approach we’ve taken on AI – relying on the Consumer Duty and Senior Managers Regime – has been critical to us doing so. The recommendations build on work the FCA has been doing – not least allowing firms to test their use of AI with us – and our own use of AI to be a smarter regulator, more efficient and effective.”
Also see: MALG research and resources ‘Exploring Safe & Effective Self-Serve in Regulated Debt Advice in the Generative AI Era‘ published in March 2026.