The Financial Conduct Authority (FCA)
is working with major firms to test Artificial Intelligence (AI)
in a safe place to better understand the potential benefits and
risks.
The AI
Live Testing initiative is the
first of its kind in the financial sector to help firms
who are ready to use AI in UK financial markets. Participating
firms receive tailored support from the FCA's regulatory team and
its technical partner Advai to develop, assess and deploy safe
and responsible AI.
Gain Credit, Homeprotect part of the
Avantia Group, NatWest, Monzo, Santander, Scottish Widows part of
Lloyds Banking Group and Snorkl are the first group to take
part.
AI testing is helping firms to address
key questions around evaluation frameworks, live monitoring
governance and risk management to ensure that AI is deployed
safely and responsibly for consumers and markets.
Many of the AI applications currently
being tested as part of the project focus on retail financial
services including use cases to harness AI to support debt
resolution or provide financial advice. Applications are also
exploring the potential for AI to help improve customer
engagement, streamline complaints handling and help consumers to
make smarter spending and saving decisions.
Jessica Rusu, chief data, information
and intelligence officer at the FCA, said: “Our new AI Live
Testing service helps firms who are ready to use AI in live
markets. By working closely with firms and our technical partner
Advai, we're helping to make sure that AI is developed and
deployed safely and responsibly in UK financial markets.”
The project will help the
FCA better understand how AI could shape UK financial
markets and inform its future approach to the
technology.
AI Live Testing complements the FCA's
Supercharged Sandbox which helps firms who are in the
discovery and experiment phase with
AI.
Applications for the second cohort for
AI Live Testing will open in January
2026 and participating firms will be
able to start testing in April.
Notes to
Editors
-
In September, we published
a Feedback Statement on the potential benefits, opportunities and
challenges raised by our proposal for AI Live
Testing.
-
We set out how the FCA is working to
accelerate digital innovation in our response to the Prime Minister's
letter, including that we
would avoid additional regulations for AI by relying
on existing frameworks.
-
Advai is a UK-based AI company
specialising in automated testing, evaluation and assurance of
AI systems, providing independent technical evidence so
organisations can deploy AI safely and confidently at
scale.
