Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the use of generative AI tools by consumers for pension planning and investment decision-making; and what steps they are taking to ensure that appropriate consumer protections and regulatory safeguards are in place.

HMT has recently appointed Harriet Rees and Rohit Dhawan as Financial Services AI Champions. They will focus on helping firms seize opportunities of AI while protecting consumers and ensuring financial stability.

In recognition of growing consumer interest in these tools, the Financial Conduct Authority (FCA) has published information for consumers on using AI for investment research. This sets out the pros and cons of such tools, including the risk of incorrect or out-of-date information, and makes clear that advice from general purpose AI tools is not regulated and does not benefit from protections such as the Financial Services Compensation Scheme or the Financial Ombudsman Service.

The FCA also launched the Mills Review in January 2026 which will consider the implications of advanced AI on consumers, retail financial markets and regulators. The review will help the FCA support innovation while promoting the safe and trusted adoption of AI in retail financial services.