Britain's top financial regulator says the country should consider whether large language models — the AI systems behind tools like ChatGPT, Claude, and Gemini — need to fall under financial regulation.
According to CNBC-TV18, the Financial Conduct Authority's Sheldon Mills has urged a review of how these models are treated, arguing that AI is increasingly shaping the choices consumers make about money. As these systems move from answering questions to actively steering financial decisions, the concern is that existing rules were not written with them in mind.
The push comes as AI takes on a more hands-on role in finance. PYMNTS reports that the FCA is seeking more AI regulation "as agents take over finance" — a reference to so-called AI agents that can act on a user's behalf rather than simply offer information. That shift raises questions about accountability: if an AI tool nudges someone toward a loan, an investment, or an insurance product, who is responsible when things go wrong?
Mills's comments stop short of proposing specific rules. The framing is that regulators should study the issue now, before AI models become deeply embedded in how ordinary people bank, borrow, and invest.
The FCA oversees financial firms and consumer protection in the UK, so any move to bring general-purpose AI models into its remit would be significant. It would also stand out because these models are built by technology companies, not traditional financial institutions.
Why it matters: if the UK decides that the AI behind everyday chatbots counts as a financial actor, it could reshape how the technology is built, sold, and supervised — setting an early template other regulators may follow.