The UK’s Financial Conduct Authority is warning of an ‘arms race’ to regulate artificial intelligence in financial services, as millions use AI to make personal finance decisions. The authority’s executive director, Sheldon Mills, says regulators need greater powers to keep up with AI’s rapid growth and potential risks, such as bias and manipulation. A new report highlights the benefits and risks of AI in finance, including ‘hyper-personalization’ that can both help and harm consumers. Why it matters: the lack of regulation in AI-driven financial services poses significant risks to consumers, making it crucial for regulators to adapt and keep pace with the technology’s evolution.