FCA's Mills Review: AI agents may weaken broker differentiation

The debate over AI in retail trading has moved from whether the technology works to who captures its economic value. Interactive Brokers' October launch of autonomous trading, which lets eligible clients authorise connected AI to submit supported orders within defined parameters, and Scalable Capital's decision to open its platform to major AI assistants, illustrate a shift from AI as a feature inside a broker's app to AI agents that connect to brokerage accounts and submit orders directly.

The UK FCA's July 2026 Mills Review raised the possibility that this shift could move competitive power toward firms controlling the customer interface, warning that AI-mediated product comparisons could weaken traditional brand loyalty. The review suggested some firms may thrive while others struggle as they increasingly need to appeal to AI agents programmed to optimise for price, value, risk or fit rather than brand loyalty or marketing.

Evidence on actual business impact remains mixed. Condor Capital Wealth Management's Q2 2026 digital advice report examined AI agents connected to funded brokerage accounts and found capable tools but also substantial setup friction and unresolved questions about reliability, security and liability, though the researchers stressed their tests were short and not a definitive measure of future performance. Meanwhile, the Bank of England and FCA's October 2026 survey found 86% of responding financial services firms used AI, but only 7% of reported AI systems were classified as highly material to their businesses, indicating a gap between adoption and material business impact.