AI on Trial: UK Regulator’s Bold Review Could Rewire Retail Finance
Jonathan Akosa
Finance Writer
In January of 2026 the UK’s Financial Conduct Authority (FCA) began to conduct a review on the applications of artificial intelligence in retail finance. A review is not a lawsuit or a change of rules but rather just the research and collection of information to try and predict future changes as well as decide if the rules need to be updated. This particular investigation is referred to as the Mills Review in the news, named after the FCA head, Sheldon Mills. They are focusing on the influence of artificial intelligence on consumers, markets, and firms and how it could rewire retail finance as we know it today. Some of the firms in the British retail finance space are LIoyds Banking Group, Barclays Bank, HSBC UK (Hong Kong and Shanghai Banking Corporation), Vanguard UK, Santander UK etc.
Artificial intelligence has already been assigned a lot of responsibilities in the retail finance space. The Bank of England has already indicated that 55% of all AI cases have some degree of automated decision making as of late 2024. Artificial intelligence is already being used to assign credit scores and detect fraud. These are very high-stake responsibilities to give artificial intelligence. If this data is messed up by AI, consumers can be severely punished for doing nothing wrong. This has brought up many concerns for consumers and is a large reason for the review.
The widespread use of artificial intelligence for these purposes brings concern of data monopolies and market concentration. If only a few large companies got access to the AI data tools necessary to complete processes in retail finance, it could create monopolies in the retail finance industry because only the big companies will be able to afford these automation tools. This all stems from the big artificial intelligence companies will have too much pricing power. This is problematic because these extra costs will be passed down to the consumers in the price of the services that these companies provide.
The Mills Review is a response to consumer concerns and speculations. With new applications of artificial intelligence being implemented, the current rules do need to be revised and adjusted. This ensures that the rules become more appropriate for what we see in today’s world and what we can expect to see in the future. Alongside the consumers, the government also has a valid concern because they are supposed to protect the consumers and by allowing monopolies in the retail finance space, they would not be fulfilling that obligation.
Contact Jonathan at jonathan.akosa@student.shu.edu