What Are Consumer Duty AI Tools?
As the Financial Conduct Authority (FCA) tightens its regulatory focus on Consumer Duty, financial firms are under pressure to prove that they’re delivering “good outcomes” for retail clients. According to the FCA, "Consumer Duty sets higher and clearer standards of consumer protection across financial services and requires firms to put their customers' needs first." Consumer Duty AI tools are software platforms that use artificial intelligence to help firms monitor, assess, and improve their compliance with these obligations — especially across digital communication channels, QA workflows, and customer journeys. Sedric is in this class of AI tools.
These tools provide a proactive, scalable, and real-time approach to compliance, going beyond tick-box assessments to drive measurable improvements in customer experience and regulatory alignment.
Why AI Matters for Consumer Duty Compliance
Traditional compliance methods often rely on:
- Manual reviews of customer interactions
- Post-event audits
- Static checklists and slow feedback loops
This is no longer sufficient.
AI tools can:
- Monitor 100% of customer interactions across channels (voice, chat, email, etc.).
- Identify potential harms in real-time (e.g., poor advice, misleading language, or unfair practices).
- Alert supervisors immediately when Consumer Duty breaches or risks emerge.
- Track performance against all four FCA outcomes: Products and Services, Price and Value, Consumer Understanding, and Consumer Support.
Key Capabilities to Look for in Consumer Duty AI Tools
When evaluating AI-powered compliance platforms, firms should prioritize the following capabilities:
1. Real-Time Monitoring
AI tools like Sedric use large language models (LLMs) to automatically analyze every customer interaction for potential Consumer Duty risks. Sedric's three-layered AI trained specifically for compliance to detect, protect and correct communications and marketing compliance violations.
2. Customizable Risk Models
Your firm’s interpretation of Consumer Duty may evolve. The tool should let you tailor risk flags, scorecards, and thresholds. Sedric is constantly monitoring your affiliates to ensure compliance.
3. Outcome-Based Reporting
The FCA expects ongoing measurement. Choose platforms that help you track and visualize your compliance with each of the four Consumer Duty outcomes.
4. Scalable Quality Assurance
Instead of sampling 2–5% of interactions, AI lets you QA everything, increasing accuracy and transparency.
5. Audit-Readiness
Ensure the platform creates a clear audit trail — critical for demonstrating compliance during FCA reviews or internal governance assessments.
Use Case: How AI Helped a UK FinTech Stay Ahead of Consumer Duty
A leading UK digital fintech platform used Sedric’s AI-driven compliance engine to:
- Detect high-risk sales calls where customers were misled about product fees.
- Coach agents in real-time, reducing repeat infractions by 42% in 60 days.
- Generate automated reports mapping customer interactions to FCA outcome metrics.
The firm reported increased confidence going into Consumer Duty board reviews — and a measurable improvement in customer satisfaction scores.
How to Get Started with Consumer Duty AI Tools
Here’s a simple roadmap:
- Assess your current QA and monitoring process.
- Identify high-risk touchpoints (sales calls, chatbot conversations, claims handling, etc.).
- Pilot an AI compliance platform in one business unit or product line.
- Define success metrics (e.g., QA coverage, risk reduction, CX improvement).
- Roll out across teams once proof of value is established.
Final Thoughts
Consumer Duty is not a one-off deadline — it’s a mindset shift. Financial services firms that embrace AI-driven compliance will be better positioned to manage regulatory scrutiny, safeguard customers, and drive trust.
Consumer Duty AI tools are no longer optional — they’re essential.
Speak with Sedric to learn more about how we are helping other FCA regulated UK firms comply with Consumer Duty.
