The Financial Conduct Authority (FCA) is set to launch an innovative live AI testing service aimed at helping firms deploy safe and responsible artificial intelligence (AI) solutions. This move is part of the FCA’s ongoing commitment to support the development and adoption of AI while ensuring the protection of UK consumers and financial markets.
Scheduled for launch in September 2025, the live testing service will be a vital new component of the FCA’s AI Lab. Since its inception, the AI Lab has provided firms with crucial support in developing and deploying AI technologies. The introduction of the live testing service aims to fill a testing gap that has hindered AI adoption within the financial services sector, offering firms a collaborative space to test AI tools before their official rollout.
Under this new initiative, firms will have the opportunity to work directly with the FCA to ensure their consumer- or market-facing AI models meet regulatory standards. By providing real-world testing, the FCA will also gather valuable insights into the potential impacts of AI on UK financial markets, further enhancing the regulator’s ability to monitor emerging risks and opportunities.
The proposed live testing service will be available for a period of 12 to 18 months and is expected to provide significant regulatory support to firms that are ready to deploy AI solutions. The testing will not only offer guidance on compliance but also help ensure that AI systems operate safely and responsibly within the financial ecosystem.
Jessica Rusu, the FCA’s Chief Data, Intelligence and Information Officer, commented, “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.”
This initiative aligns with the FCA’s new 5-year strategy, which focuses on enabling innovation, supporting growth, and maintaining the competitiveness of the UK’s financial services sector through a tech-positive approach. The strategy also outlines the FCA’s commitment to being a smarter regulator by leveraging data and technology for more effective supervision.
As part of the consultation process, the FCA is seeking feedback from firms on the live testing service and its potential benefits. The feedback period will close on June 10, 2025, with the service expected to play a key role in the responsible deployment of AI across the UK financial services industry.
The introduction of the live AI testing service represents a significant step forward in fostering a regulatory environment that supports innovation while ensuring the safety and security of financial markets. It highlights the FCA’s commitment to embracing technological advancements and supporting firms as they navigate the complex landscape of AI deployment.
For more details on how to engage with the consultation and contribute feedback, firms can refer to the FCA’s official engagement paper.
