Lloyds pilots AI investment guidance tool as UK regulator studies impact

Lloyds Banking Group has launched a pilot program for an AI-powered investment guidance tool with a small group of customers through its Scottish Widows pensions and investments arm. The tool is expected to be expanded later this year. The move is part of efforts by British lenders to compete with specialist wealth managers. The Financial Conduct Authority is reviewing the impact of AI on financial services and has launched a live testing program with eight institutions, including Lloyds. The regulator is examining whether AI could shift market power away from regulated financial firms. The use of AI in financial advice raises concerns about potential risks, including amplifying mistakes and mis-selling products.