FCA says there is ‘already consumer appetite for AI’ and explains insurance impact

Artificial Intelligence (AI) may move insurance closer to the point of need and automate shopping and claims guidance.

That is according to the FCA’s review into the impact of AI on retail financial services, which sets out how AI could reshape the sector for consumers, firms, markets and regulators by 2030 and beyond.

Within insurance, the review flagged embedded insurance, automated quote comparison, claims triage and guidance, as well as platform steering of discovery,  as potential market impacts of AI automated financial services.

Wider review findings

The review, which was led by FCA executive director Sheldon Mills, was published today (6 July 2026).

It found that 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 preset goals. 

In turn, the review concluded that AI is likely to become a defining force in retail financial services, identifying four AI‑driven shifts 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.

Mills said: “AI 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.”

AI concerns

The review also noted concerns about trust and control of AI.

It said that 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”.

In turn, several recommendations have been made, including securing and adapting the regulatory perimeter, strengthen system-wide coordination and oversight, monitoring the transition to autonomous models and adapt regulatory frameworks and developing a trusted public-interest AI-enabled financial capability service.

Ashley Alder, chair at the FCA, said: “The board is enormously grateful to Mills 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.’