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The UK’s Financial Conduct Authority (FCA) is calling on artificial intelligence providers to introduce clear disclaimers for services that deliver financial information and advice through agentic AI, as concerns grow over consumer protection and accountability.
Jessica Rusu, the FCA’s Chief Data, Information and Intelligence Officer, made the call during a speech at a Bloomberg event, highlighting the need for stronger safeguards as consumers increasingly turn to large language models (LLMs) and AI-powered tools to guide financial decisions.
FCA raises concerns over AI-generated financial guidance
Rusu said consumers are increasingly using general-purpose AI platforms, including ChatGPT, Gemini and Claude, to obtain financial information and advice. At the same time, regulated financial services firms are beginning to integrate their offerings into AI platforms.
While these developments could expand access to financial information and tools, Rusu warned that they may also blur the distinction between regulated and unregulated financial activities, potentially leaving consumers uncertain about the protections available to them.
She cited findings indicating that four in five less-experienced investors aged 18 to 40 have used AI to help with investing. However, only 40% of consumers correctly understand that they may have no recourse if something goes wrong after acting on advice from a general-purpose AI tool.
The findings highlight a potential gap between the growing use of AI for financial decision-making and consumers’ understanding of the risks associated with relying on its outputs.
Regulator calls for clear and consistent AI disclaimers
The FCA already provides consumer protection resources through initiatives such as InvestSmart and the FCA Firm Checker, which help people understand financial risks and identify the protections available when dealing with financial services providers.
However, Rusu suggested that warnings could be more effective when presented at the point where consumers receive AI-generated financial information.
“Through InvestSmart and the FCA Firm Checker, we already help consumers understand the protections they have. But warnings may be more effective at the point where AI-generated financial information is delivered,” Rusu said.
She called on AI providers to help users understand the limitations of financial information and advice generated by their models through disclaimers that are clear, proportionate and consistent.
The proposal seeks to make consumers more aware of the distinction between general-purpose AI outputs and advice provided through regulated financial services. It also raises questions about how responsibility should be shared between AI providers, financial institutions and regulators as these technologies become more integrated into financial decision-making.
Industry warns of risks from inaccurate AI advice
Rusu’s comments received support from industry participants, although some have argued that disclaimers alone would not provide sufficient protection.
Amal Jolly, Chief Executive Officer of Saturn, an AI provider operating in the financial advisory sector, warned that regulatory inaction could expose consumers to serious financial harm.
Research published by Saturn found that AI chatbots provide inaccurate financial advice 57% of the time, according to the company.
“They make errors, their responses are inconsistent and there is no clear route to redress for people misled by their outputs,” Jolly said.
The findings point to concerns about the reliability and consistency of AI-generated financial guidance, particularly when users rely on responses to make decisions involving savings, investments or other financial commitments.
The absence of a clear route to redress may further complicate matters when consumers experience losses after acting on information supplied by general-purpose AI tools.
Agentic AI raises questions about accountability
The emergence of agentic AI adds another dimension to the consumer protection debate. Unlike systems that primarily respond to user questions, personal AI agents can provide tailored responses and potentially take actions on a user’s behalf.
This shift could increase the consequences of inaccurate or misleading financial outputs, particularly where an AI system moves beyond providing information to influencing or executing financial decisions.
Jolly said the development of AI-powered financial services must be accompanied by safeguards that keep pace with innovation.
“The FCA is right to embrace AI innovation, but consumer protection must evolve just as quickly. If AI is effectively guiding people’s financial decisions, it needs appropriate regulatory oversight, clear accountability and meaningful consumer protections,” he said.
He argued that asking technology companies to place disclaimers on AI-generated financial advice would not, by itself, adequately address the risks.
“Simply asking big tech companies to put disclaimers on their AI-generated financial advice is not enough. The regulator and Government need to act before consumers suffer serious harm.”
Balancing AI innovation with financial consumer protection
The FCA’s call highlights the growing challenge facing financial regulators as general-purpose AI tools become part of how consumers access financial information and make investment decisions.
Clear disclaimers could help users understand the limitations of AI-generated guidance and the protections that may not apply when using unregulated services. However, concerns raised by industry participants suggest that transparency may need to be accompanied by wider consideration of accountability, reliability and consumer redress.
As AI providers and financial institutions expand their use of these technologies, the debate over appropriate safeguards is likely to remain central to the future of AI in financial services.
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