FCA review highlights role of AI in tackling protection gap

According to The Mills Review: AI and the Future of Retail Financial Services, led by the FCA's executive director, Sheldon Mills, four key AI-driven shifts are likely to impact retail financial services. These include 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 regulator noted AI can address weaknesses in retail financial markets, including the advice gap – as only 9% of consumers access traditional advice – and the protection gap – noting just 30% hold li...