The FCA is working with major firms to test 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 editorsIn September 2025, 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 (PDF), including that we would avoid additional regulations for AI by relying on existing frameworks.Read more about how our rules apply to AI.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.