Question to the HM Treasury:

To ask His Majesty's Government what steps they are taking to regulate the use of general-purpose artificial intelligence models to provide financial guidance to consumers.

The Government wants consumers to be able to access high-quality support to make informed decisions about their finances and is committed to the safe adoption of AI in financial services, including financial guidance and advice. We support a principles-based, outcomes-focused approach to AI regulation enabling firms to innovate while maintaining high standards of consumer protection.

We recognise that general-purpose AI technology has already changed the nature of financial advice and guidance.

Earlier this month, the Financial Conduct Authority published the Mills Review, which recommended a rapid FCA review on this issue.

On 14 July, the Government published the Financial Services AI Champions’ Adoption Plan, this includes a recommendation that the FCA should consider the impacts of financial guidance and advice-like outputs through general purpose large language models (LLMs).

The Government will engage with the FCA to consider next steps. This will be an important piece of work that complements the Government’s broader ambition to make the UK a global leader in AI, leveraging our dual strengths in financial services and AI to drive growth, productivity and better outcomes for consumers.