FCA outlines AI-driven plan to modernise financial regulation
Financial regulator sets out plans to use AI and data tools to speed up decisions, improve risk detection and reduce administrative burdens for firms.
The UK’s Financial Conduct Authority (FCA) has outlined plans to integrate AI and data-driven tools into its regulatory processes as part of its 2026/27 work programme to become a more efficient and effective regulator.
The programme includes developing an internal authorisation tool to speed up approvals and using generative AI to review documents and support supervision, while maintaining human decision-making at the core of regulatory actions.
The FCA said it will also test automated data-sharing in a sandbox environment, expand its Supercharged Sandbox for firms developing AI-based financial products, and invest in analytics to better identify risks and prioritise cases.
Measures to reduce burdens on firms include removing certain data reporting requirements, simplifying digital processes and improving authorisation timelines, alongside efforts to enhance firms’ experience through new tools and feedback mechanisms.
The regulator also plans to support economic growth and consumer protection by advancing measures such as regulating buy now pay later products, speeding up IPO processes, expanding international presence, and addressing emerging risks, including the use of general-purpose AI in financial decision-making.
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