The Financial Conduct Authority has launched a new AI Live Testing programme, giving major financial firms a controlled environment to trial Artificial Intelligence and understand both its opportunities and its risks.
The scheme, which is referred to as the first initiative of its kind in the sector, offers firms hands-on support from FCA specialists and technical partner Advai as they develop and road-test responsible AI tools intended for use in UK financial markets.
The first cohort includes Gain Credit, Homeprotect (Avantia Group), NatWest, Monzo, Santander, Scottish Widows and Snorkl.
According to the FCA, early testing is focusing heavily on retail financial services, with pilots exploring how AI could support debt resolution, deliver advice, improve engagement, streamline complaints and nudge consumers towards better financial decisions.
The regulator says the programme is a chance to build a clearer picture of how AI may reshape the market and to refine its long-term approach to oversight. It will run alongside the FCA’s Supercharged Sandbox, which caters to firms still in the exploratory phase of AI development.
A second testing cohort will open for applications in January 2026, with successful firms entering the live environment from April 2026.
FCA chief data, information and intelligence officer Jessica Rusu says: “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.”
