Britain Weighs Regulating AI Models as ChatGPT Becomes a Financial Advisor

The UK may be preparing for a major shift in how artificial intelligence is regulated.

Sheldon Mills, Executive Director at the UK's Financial Conduct Authority (FCA), says the government should review whether general-purpose AI models—including OpenAI's ChatGPT, Anthropic's Claude, and Google's Gemini—should fall under direct regulation as they play a growing role in people's financial decisions.

The concern isn't hypothetical anymore.

An FCA review found that more than one in four UK consumers already trust AI chatbots for financial advice, despite the fact that these tools aren't covered by the same consumer protections as licensed financial advisers. As AI moves from answering questions to influencing investment decisions, regulators fear existing rules may no longer be enough.

The report also highlights another growing issue: concentration risk.

Banks and financial institutions are increasingly relying on the same handful of AI providers and cloud platforms. If a major AI system fails, produces inaccurate outputs, or suffers a cyberattack, the effects could ripple across multiple firms at once, creating systemic financial risks.

Rather than rushing into new legislation, the FCA is recommending a review over the next three to six months to determine whether the UK's regulatory perimeter should expand to include these foundation AI models. The regulator also says its existing principles-based approach will need to evolve as AI capabilities advance.

Why it matters

Governments are moving beyond regulating how companies use AI—they're beginning to ask whether the AI models themselves should face direct oversight. If Britain proceeds, it could influence AI policy well beyond its borders.

The upside

• Stronger safeguards for consumers using AI for financial decisions.
• Greater accountability for foundation model providers.
• Reduced risk of widespread failures caused by dependence on a few AI platforms.

The downside

More regulation could increase compliance costs for AI developers and potentially slow innovation. It also raises difficult questions about where responsibility lies: with the AI model creator, the company deploying it, or the end user.

The takeaway

AI is rapidly becoming a trusted financial assistant for millions of people. Britain's latest proposal suggests regulators no longer see ChatGPT, Claude, and Gemini as just productivity tools—they're becoming part of the financial system itself. If that trend continues, regulating the models rather than just their users may become the next global AI policy debate.