The Financial Conduct Authority (FCA) has announced plans to launch a live artificial intelligence (AI) testing service aimed at helping firms deploy AI responsibly, in a move it says will benefit consumers and bolster the competitiveness of UK financial markets.

The proposed live testing service, which would operate for 12 to 18 months starting in September 2025, will form a new part of the FCA’s AI Lab.

The Lab has already been working with firms to assist in the development and application of AI technologies, but the new service is intended to address a specific gap that has been slowing the adoption of AI tools.

DIRECT COLLABORATION

Under the scheme, firms would collaborate directly with the regulator to ensure their AI models are sufficiently robust before being released to market. In turn, the FCA would gain valuable insights into how AI might shape the future of UK financial services.

The service will offer regulatory support to businesses that are ready to deploy consumer- or market-facing AI models.

The service will offer regulatory support to businesses that are ready to deploy consumer- or market-facing AI models. It also aligns with the FCA’s broader ambition, set out in its recently published five-year strategy, to take a more “tech-positive” stance.

The regulator said it intends to use data and technology to become a smarter, more efficient supervisor while fostering innovation across the sector.

SAFE TESTING SPACE

Jessica Rusu, the FCA’s chief data, intelligence and information officer, said: “Under our new strategy, we’ve committed to being increasingly tech positive to support growth.

“We want financial firms and their customers to benefit from AI, so we’re providing a safe space to test how they plan to use it.”

The FCA is currently seeking feedback from firms on how the live testing service can best support the safe deployment of AI. Comments must be submitted by 10 June 2025.