CoinWorld News: Sheldon Mills, Executive Director of the UK Financial Conduct Authority (FCA), warned that as businesses and individuals accelerate their adoption of AI, regulators are facing a “race of arms” in trying to catch up with the speed and scale of AI adoption in the financial services industry. An AI financial impact report written by Mills says that 20% of UK adults are willing to let large language models replace them in making savings or borrowing decisions. This kind of service is equivalent in user experience to regulated traditional financial advice, yet because it operates outside the regulatory boundary, users are unable to obtain any economic compensation when they suffer losses. The report calls for an urgent review of unregulated financial AI risks and for an expansion of legislative authority to strengthen oversight of core technology providers such as Anthropic, OpenAI, Amazon, Google, and Microsoft through a “key third party” mechanism.