Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of (1) the use of artificial intelligence tools by consumers when making mortgage and other financial product decisions, and (2) the implications of that use for consumer protection.

The majority of mortgage loans are intermediated. Mortgage brokers are regulated by the Financial Conduct Authority and must comply with FCA Rules including the Consumer Duty and relevant mortgage conduct rules.

Regulated firms are already required to manage technology-related risks to consumers and financial stability, including those arising from the use of artificial intelligence (AI), under existing FCA rules. These include requirements relating to governance, operational resilience and data use.

The Government believes that the safe adoption of AI by the financial services sector is a major strategic opportunity that will power growth across the economy. As set out by the Chancellor in her Mais lecture, the Government’s ambition is for the UK to be the fastest adopter of AI in the G7, to boost productivity, drive economic growth, and deliver better products for consumers.