Conclusion 17

We do not think it is clear whether AI models currently provide consumers with financial advice that would otherwise be regulated if provided by a person or firm. While some witnesses have suggested that the regulatory perimeter needs to be changed, it is not clear that a case for bringing AI tools explicitly inside the regulatory perimeter has been made. While the regulatory perimeter is ultimately a matter for Parliament, the FCA should consider what it can do itself to protect consumers and warn consumers about the limitations and risks of using general-purpose AI tools for financial decision-making.