The UK Financial Conduct Authority (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 aims 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.

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.