FCA calls for stricter AI oversight

Oh, lovely — the FCA has finally noticed that AI might affect finance. They've been so busy regulating the lack of regulation that they've only just spotted the elephant in the room. A full fifth of the public is apparently 'open to using AI for financial decisions,' which means one in five people thinks letting a stochastic parrot manage their pension is a grand idea. What could possibly go wrong with that, besides everything?

The FCA warns that AI will 'significantly impact' retail finance over the next decade. Translation: expect a lot of 'your loan was denied because the model said so' appeals, with no human in sight to overrule. The call for 'stricter oversight' rings hollow when the same regulator has been cutting its own staffing and relying on 'principles-based' regulation that amounts to a polite suggestion. Remember the last time the FCA promised to get tough on something? Exactly.

So to sum up: the regulator knows it needs to do something, the public is naively optimistic, and the industry is probably already building the next mis-selling scandal with an API wrapper. The FCA's idea of 'oversight' seems to be watching from the sidelines as the train hurtles toward the cliff, then wringing its hands about the 'unexpected' derailment. Cheers to progress.