AI-Generated Complaints Stoke Caseload Burdens
The Financial Ombudsman Service (FOS) is reaching out via phone calls to get to the heart of consumer disputes because complaints drafted using artificial intelligence tools are adding unnecessary length, factual errors, and delays. Chief ombudsman James Dipple-Johnstone noted that in one striking case, 37 out of 39 references in a consumer submission were incorrect. The ombudsman has observed that AI-written submissions can obscure core issues beneath masses of irrelevant material, creating substantial extra work for caseworkers. The FOS tracked that up to a third of responses to its initial assessments earlier this year appeared to be heavily assisted or generated by AI. Furthermore, claims management companies and legal representatives are also utilizing AI to generate extensive submissions running to more than 200 pages.
Rising Volumes and Incoming Reforms
This operational pressure coincides with an overall climb in complaint volumes, with the FOS receiving 57,000 cases in the second quarter of 2026/27 and 110,500 during the first half of the year, which included 25,800 insurance-related cases. New powers introduced on October 1 allow the ombudsman to dismiss complaints to focus on its intended informal role. Additionally, the FOS holds nearly 100,000 motor finance complaints and anticipates hundreds of thousands more if the FCA motor finance redress scheme proceeds following its upcoming Tribunal hearing. The ombudsman also faces upcoming governmental reforms before Parliament designed to limit its scope when firms comply with regulation, require consultation with the Financial Conduct Authority on unclear regulatory matters, and introduce a ten-year time limit for complaints.