The Financial Conduct Authority (FCA) has launched a new live testing programme designed to help financial services firms deploy artificial intelligence safely, offering tailored regulatory support as businesses move beyond experimentation and into real-world use.

FIRST COHORT CONFIRMED

The initiative, known as AI Live Testing, is the first scheme of its kind in the sector and aims to give firms ready to introduce AI into UK markets a structured environment in which to trial the technology.

Participants will receive oversight and advice from the FCA’s regulatory specialists, alongside technical input from Advai, the authority’s partner on the project.

The first cohort includes Gain Credit, Homeprotect as part of the Avantia Group, NatWest, Monzo, Santander, Scottish Widows within Lloyds Banking Group, and Snorkl. Their work will focus on understanding the benefits and potential risks associated with AI, helping shape future regulatory expectations.

CONSUMER-FACING USE CASES

According to the FCA, many early applications being trialled sit within retail financial services. Use cases include AI tools to support debt resolution, provide financial advice, and help customers make better spending and saving decisions.

Other areas being tested involve improving customer engagement and streamlining complaints handling.

The testing framework is designed to examine governance, evaluation methodologies, live monitoring and risk management so that new systems can be deployed responsibly and without unintended harm to consumers or markets.

INSIGHT FOR FUTURE POLICY

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.”

Insights from the programme will inform the regulator’s broader approach to AI, ensuring policy keeps pace with technological development and real-world behaviour, it says.

SECOND COHORT OPENS IN JANUARY

AI Live Testing sits alongside the FCA’s Supercharged Sandbox, which supports firms still in the discovery and experimentation stages of developing AI solutions. Applications for the second cohort of live testing will open in January 2026, with selected firms able to begin work in April.