AI is rapidly transforming the world of personal investment. Retail savers around the world are asking chatbots for investment strategies, debt management plans and stock tips. Adoption is happening quickly: research found a fifth of UK adults were open to using AI models to make financial decisions for them.
UK regulators are taking notice. The Financial Conduct Authority this week published the Mills Review, which highlights new risks from the use of AI in retail financial services.
Regulators are wise to pay attention to emerging technologies but should avoid saddling them with excessive regulations. As governments around the world develop responses to the use of AI in retail financial services, they can mitigate risks while ensuring that citizens can still reap the benefits of large language models.