UK regulator warns of "arms race" to keep up with AI use in financial services

The UK Financial Conduct Authority has indicated it may require expanded regulatory powers to effectively monitor the rapid integration of artificial intelligence in personal financial services. As millions of consumers increasingly rely on automated tools for money management, officials warn that current oversight frameworks struggle to keep pace with the evolving technology. This potential shift reflects broader concerns about maintaining market integrity and consumer protection as algorithmic decision-making becomes standard in the banking and investment sectors.