The Financial Conduct Authority (FCA) is introducing a live AI testing service designed to help UK financial firms deploy artificial intelligence models safely and responsibly. Set to launch in September 2025, the service will be a key feature of the FCA’s AI Lab, offering financial institutions a supervised environment in which to trial their AI tools before full implementation.
With many firms citing compliance challenges and regulatory uncertainty as major barriers to adopting AI, the FCA aims to bridge a critical gap in the market. The proposed 12–18 month initiative will allow companies to collaborate directly with the regulator, ensuring their models meet both technical and ethical standards. This cooperative model will not only boost firm confidence in AI deployment but also give the FCA critical insights into how AI systems are shaping the financial ecosystem.
The service is being developed amid growing industry concern that rigid regulatory frameworks are inhibiting investment in advanced technologies. By offering a “safe space” for real-world experimentation, the FCA hopes to strike a balance between encouraging innovation and protecting consumers.
Jessica Rusu, Chief Data, Intelligence, and Information Officer at the FCA, says the move reflects a shift in the agency’s broader outlook: “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.”
The FCA is currently inviting feedback from the financial services industry to shape the live testing framework ahead of launch.