Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the level of consumer protection for those using AI tools for personal finance purposes, in particular in regard to protection from data misuse, inaccurate advice and fraud.

The government’s ambition is to make the UK a global leader in AI, leveraging our dual strength in financial services and AI to drive growth, productivity, and consumer benefits. Safe adoption is an essential part of realising that vision.

The UK's data protection framework applies to the processing of personal data throughout the design, development and deployment phases of AI tools. Organisations are required to ensure that personal data is processed fairly, lawfully, transparently, and securely. People also have a number of rights over how their personal data is used, such as the right of access, rectification, or erasure.

In relation to financial advice, the government recognises that people do not always have access to the support they need when making financial decisions, and an increasing number are turning to technologies such as general-purpose large language models for help.

The government wants to ensure that people can receive meaningful support from firms they know and trust – such as their bank or pension provider. That is why we are taking steps to enable trusted firms to do more to proactively support their customers.

To this end, the government is introducing a new regime for targeted support, allowing firms to engage directly with customers and suggest products or courses of action suitable for their financial situation. As announced by the Chancellor at her Mansion House speech earlier this year, targeted support will be available online in time for the next financial year.