The 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.
Businesses such as Gain Credit, Homeprotect part of the Avantia Group, NatWest, Monzo, Santander, Scottish Widows part of Lloyds Banking Group and Snorkl will be taking part in the first group.
The Financial Conduct Authority said: “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.”
The city watchdog believes this initiative will help it understand how AI could shape UK financial markets and inform its future approach to the technology.
The AI Live Testing complements the “supercharged” sandbox the FCA launched in collaborated with Nvidia in June 2025 to help firms experiment safely with AI to support innovation.
FCA chief data, information and intelligence officer Jessica Rusu 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.”
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.
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.
