Overview
- The Financial Conduct Authority is rolling AI into authorizations, supervision and enforcement and plans to use generative models to review firms' documents as part of its 2026/27 program.
- The regulator says automation has cut routine case handling dramatically, reporting that simpler cases that once took hours now take minutes on average.
- A 12-week pilot using Palantir to link the FCA's datasets has finished and the regulator is assessing results with any further use subject to a formal procurement process.
- The FCA completed an AI data protection impact assessment and a reputational risk and public trust review and says officials, not algorithms, will remain accountable for regulatory judgments.
- Firms should expect supervisors to run AI tools over submissions and combined data, so clear records, traceability and explanations for decisions will matter more and the FCA is continuing live tests with industry and international partners.