FCA urges AI firms to add clear warnings for unregulated financial advice

The UK’s Financial Conduct Authority has issued a warning to artificial-intelligence providers, urging them to add clear, consistent disclaimers that their chatbots do not offer regulated financial advice. The call follows a surge in British consumers turning to platforms like Gemini and Chat GPT for investment tips, with a survey showing 40% of younger investors incorrectly believe the FCA oversees these services. FCA chief data and information officer Jessica Rusu said the technology can broaden access but also blurs the line between regulated and unregulated advice, risking consumer protection.

She noted that some regulated firms are using AI in ways that lack proper governance, exclude vulnerable users, or overstate capabilities, and many lack adequate cyber insurance. The regulator is also deploying AI internally to focus on high-impact harms, improve staff skills, and monitor anti-money-laundering activities. Industry voices, such as Sam Christopher of Quilter, welcomed the stance but cautioned against overly prescriptive rules that could hinder innovation.