AI can answer the advice gap, but advisers must get ahead of it – reaction

Stuart Cheetham, CEO of MQube, said the firm welcomed the review as it recognised both the opportunities and responsibilities that came with the increased adoption of AI across financial services. 

Regarding mortgages, the review suggested that the knowledge gap between consumers and firms would narrow as people used AI to search the market, but consumers would continue to trust advisers to deal with complex and high-value processes. 

Cheetham expanded on this, saying that “for most people, buying a home is the biggest financial decision they’ll ever make, and that’s why the expertise, empathy and judgement of a qualified mortgage broker will remain indispensable”. 

He said the real opportunity would be in using AI to remove the administrative burden that could slow the mortgage process due to legacy technology. 

The Mills Review covered this, saying mortgages were an early example of how tokenisation-type solutions, such as open finance, could be used to make products and transactions easier to manage, automate and execute. 

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Cheetham said that by automating tasks, improving data processing and reducing application times, “AI and technology can free-up brokers time so that they can focus on what matters most, which is providing personalised, high-quality advice and helping customers navigate complex decisions with confidence”. 

Advisers must control where AI sits in the process 

Karl Griffin, CEO and co-founder of JammJar, said the Mills Review was the “clearest signal yet” that AI in financial services had moved from experiment to expectation, but said the review raised the question of who would control the client relationship by 2030. 

Griffin said the FCA named incumbents, big tech, AI intermediaries and the consumer’s own agent as four potential candidates, meaning “advisers aren’t guaranteed a seat at that table”. He said the way around this was for advisers to become AI-native. 

“That the intelligence sits inside your firm rather than between you and your client,” he added. 

However, Griffin said the review should “reassure advisers, not frighten them”. 

He added: “The FCA has concluded that the existing framework, including Consumer Duty, is fit for purpose, and it frames AI as the answer to the advice gap rather than a replacement for advice. Human judgement stays at the centre. 

“What changes is everything around it: the admin, the data, the follow-up. Firms that let AI carry that load will serve more clients, better, without hiring an army to do it.” 

Cheetham agreed, saying: “The future of the mortgage market is one where AI and advisers work together. Used responsibly, technology can make the process quicker and more efficient while ensuring consumers continue to benefit from the trusted human advice that sits at the heart of the home buying journey.” 

AI cannot replace advised understanding 

David Brooks, head of policy at Broadstone, said AI could help people to engage with and understand financial products, but consumer should treat it as a starting point, “not a substitute for professional guidance or regulated advice”. 

Brooks said: “As AI becomes more widely used, improving public understanding of its limitations will be just as important as improving the technology itself. Trust should be earned through accuracy and accountability, not assumed because an answer sounds convincing. 

“Generative AI is excellent at sounding authoritative, but not always at being right,” saying that people should understand that convenience was not the same as reliability. 

Brian Byrnes, head of personal finance at Moneybox, said: “Innovation and consumer protection shouldn’t be competing priorities – they need to go hand in hand and the FCA urgently examining whether the regulatory perimeter remains fit for an AI-enabled financial system is the correct first step. But the pace of AI development means this work cannot wait.” 

Byrnes said as AI increasingly influenced financial decisions, it was “essential that consumer protections evolve at the same pace, otherwise we risk the regulatory equivalent of closing the stable door after the horse has bolted”.

He added: “Getting this right will require close collaboration between regulators, government and industry. Together, we have a real opportunity to create a regulatory framework that protects consumers, gives firms the confidence to innovate responsibly, and cements the UK’s position as a global leader in AI-enabled financial services. 

“We look forward to working with the FCA and the wider industry to help build a trusted framework that safeguards consumers while enabling innovation to flourish.”