The mid-2020s seem to be the time when regulators and industry bodies decided to issue guidance on how people should use AI in their jobs.
The pace at which this new technology advances continues to be entirely different from that of any other technology known before.
As such, fintech executives are hopeful that future regulation and guidance will rear its head much sooner so the fintech sector can benefit from it earlier in the process. However, the approaches taken by governments vary wildly, creating a complex tapestry of global standards that firms must navigate.
The UK context: moving beyond basic guidance
The latest is HMRC, which has published its guide to using generative AI for software developers. The guidance outlines what to expect regarding software transparency, strong data security, ethical practices, and the maintenance of human oversight.
Whilst it’s excellent to see some of these things written down on paper, just for the avoidance of doubt, it’s not certain whether many people in the industry have been operating under any different principles since people started building out these applications several years ago.
Russell Gammon, Chief Innovation Officer at Tax Systems, notes, “I understand that HMRC can’t go out on a limb and propose something too radical. However, Pandora’s box is well and truly open. This sort of guidance 2.5 years ago would have been really useful for people who hadn’t started the AI journey. At this point in time, pretty much every firm of any size will have looked at this stuff, understood how it works, and incorporated it to a greater or lesser extent within their business.”
Ultimately, the guidance is helpful for businesses to point to, ensuring that what they’re doing passes muster. However, one cannot be entirely sure that it really says anything new or different from what is already known.
The rise of agentic AI in the British economy
A more forward-looking perspective emerged from an AI summit held at the House of Lords, which called for greater use of agentic AI to rejuvenate Britain’s sluggish economy.
Chaired by Steven George-Hilley, founder of Centropy PR, the summit brought together thought leaders to examine the economic impact of AI.
What would be fascinating, for example, would be to get guidance on the use of agentic AI. It’s a fundamentally different approach to using AI within the business, and it would be exciting to see it take hold.
Agentic AI can make decisions autonomously from humans, which might cause an issue, particularly with the current guidance.
Jan Tlaskal, Chief Data Engineer at Galytix, argues:
“With the financial services sector facing an increasingly complex risk environment… the role of domain-specific AI to provide accurate data and high-trust decision-making cannot be underestimated. Far from being a technology to shy away from, Agentic AI is a strategic risk management advantage.”
A case study from the USA: balancing innovation with systemic risk
Across the Atlantic, the United States is wrestling with the systemic implications of AI in capital markets.
The Securities and Exchange Commission (SEC) has taken a more aggressive stance on the potential conflicts of interest embedded in algorithmic trading and advisory models.
SEC Chair Gary Gensler has repeatedly warned against “AI washing” and the “horizontal challenge” posed by a few dominant AI models underpinning the entire financial sector.
In recent statements, Gensler has highlighted that if a human uses AI to defraud investors, they will “likely be hearing from the SEC,” emphasising that existing securities laws apply regardless of the technology used.
The US approach focuses heavily on preventing “predictive data analytics” from placing a firm’s interest ahead of its clients-a critical consideration for fintechs operating in the wealth management space.
The UAE: a centrally planned AI oasis
In contrast to the reactive regulatory measures seen in some Western markets, the United Arab Emirates has adopted a state-led, pro-innovation strategy.
Omar Sultan AlOlama, the UAE’s Minister of State for AI, emphasises a “long-term approach” that views AI as a tool for national competitive advantage rather than just a risk to be managed.
The UAE’s Strategy for AI 2031 aims to position the nation as a global testbed for AI governance. By establishing the Dubai International Financial Centre (DIFC) as a hub with its own AI and Coding license, the government is actively inviting fintechs to build “sovereign” AI capabilities.
AlOlama has stated that the goal is not to stifle innovation but to ensure that the workforce has the “broad skills” necessary to remain relevant, a clear signal that the UAE intends to import and cultivate high-level fintech talent.
South America: Brazil’s pragmatic integration
In South America, Brazil stands out as a global leader in integrating AI with public infrastructure.
The Central Bank of Brazil (BCB) has successfully deployed “Pix,” its instant payment system, and is now leveraging AI to power its “Open Finance” ecosystem.
Roberto Campos Neto, Governor of the Central Bank of Brazil, envisions a future where AI drives the creation of financial “super-apps.”
Neto argues that the convergence of Open Finance and AI will enable a marketplace where products are hyper-personalised, and aggregators reduce friction in traditional banking.
For Brazilian regulators, AI is the engine that will allow the unbanked to access sophisticated credit and insurance products, moving the conversation from “risk” to “inclusion.”
Global data: the economic imperative
The economic stakes of these regulatory decisions are massive.
McKinsey & Company estimates that generative AI alone could add between $200 billion and $340 billion in value annually to the global banking sector. This forecast represents roughly 2.8 to 4.7 per cent of total industry revenues.
However, this value is not guaranteed. The International Monetary Fund (IMF) warns that AI will affect 60% of jobs in advanced economies, creating a potential “tsunami” in the labour market if not managed correctly.
Fintech executives must therefore navigate a landscape where the technology drives immense profit potential but also significant social and regulatory scrutiny.
The skills cliff-edge and workforce transformation
Attendees at the House of Lords summit warned of the looming “skills cliff edge” in Britain’s workforce, as artificial intelligence continues to reshape the economy and redefine boardroom priorities.
Rupert Osborne, CEO of trading platform Capital.com, notes: “Our research, which looked at the barriers to investing in the UK, shows that people value tools that are personalised to their experience level and learning needs. Used responsibly, AI can organise data, explain market movements, and make uncertainty more visible so decisions are informed by context and risk, not just price.”
This sentiment echoes the IMF’s findings: the divide will not be just digital but also educational.
Governments are increasingly looking to the private sector to bridge the gap between academic output and the practical, “agentic” skills required in a modern fintech environment.
Cyber resilience: the non-negotiable foundation
Regardless of the jurisdiction, security remains the common denominator. Cyber expert Graeme Stewart, head of public sector at Check Point Software, said:
“AI has the potential to completely transform every aspect of public services… but these plans must be underpinned by a commitment to security and privacy standards.”
He adds, “We’ve already seen how ruthless hackers can be when it comes to targeting vulnerable organisations… So cyber resilience must be built into these investments, both in terms of strategy and software, to ensure data remains secure in the midst of AI rollouts.”
Conclusion: the divergent yet parallel paths
As the fintech industry looks toward the latter half of the decade, the global regulatory landscape for AI in fintech is diverging in method but converging in intent.
Whether it is the UK’s principles-based guidance, the USA’s strict enforcement of existing laws, or the UAE and Brazil’s state-led innovation models, the message is clear: the experimental phase is ending.
For fintech executives, the challenge will no longer be just adopting AI, but aligning their long-term strategies with the specific regulatory “personality” of the jurisdictions in which they operate.
A further look into AI governance in fintech
SEC’s Gary Gensler on an AI Future
The video below is relevant because it features SEC Chair Gary Gensler directly addressing the intersection of AI regulation and financial markets, providing a primary-source view of the US regulatory mindset discussed in the article.