This is how you can directly shape the regulators approach to AI

Ever wanted to discuss your views on the use of artificial intelligence in financial services with the regulator? Well now’s your chance.

The FCA is seeking feedback from firms about how its live AI testing service can help them to deploy safe and responsible AI.

“AI continues to evolve swiftly, requiring an agile approach. As part of AI Live Testing, our regulatory and technical teams will work directly with firms, providing tailored support as firms develop, assess and deploy live AI models in UK financial markets,” the FCA says.

The regulator plans to launch AI Live Testing, as part of the existing AI Lab, to support firms interested in pursuing AI solutions for the benefit of UK consumers and markets.

It’s a new component of the FCA’s AI Lab, which has been supporting firms with the development and deployment of AI. The aim, the FCA says, it to help to fill a testing gap slowing firms’ adoption of AI.

The thinking behind the live testing service is that it will allow firms to collaborate with the regulator while they check that their new AI tools are ready to be used.

It’s also a data collection effort on the part of the FCA – providing the regulator with intelligence to better understand how AI may impact UK financial markets.

The live testing service will provide regulatory support to firms who are ready to deploy consumer or market-facing AI models.  

“This will include exploring output-driven validation and other methods to evaluate the impact of AI model use in UK financial markets,” the FCA says.

Through AI Live Testing, the regulator hopes firms will be able to live-test AI models to build confidence in their performance, while also receiving regulatory support and “comfort to support safe and responsible deployment”.

AI Live Testing would run for 12 to 18 months, with plans to launch in September 2025.

The proposal builds on the FCA’s new 5-year strategy which sets out how the regulator will support growth by enabling innovation and ensuring the continued competitiveness of the UK’s world-leading financial services through a tech-positive approach.  

It will also, the FCA says, support the regulator to be smarter by embracing data and technology to be more effective and efficient.

Jessica Rusu, the FCA’s chief data, intelligence and information officer, said of the launch: "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."

Feedback to the Engagement Paper closes on 10 June 2025 and can be given via the online form.

The FCA is interested in views from all stakeholders, but would particularly encourage feedback from chief information officers, chief AI officers, chief data officers and AI solution providers.

In particular it wants response to the following questions:

1. What are the primary blockers that you encounter prior to live market deployment of AI models? Are these related to technical issues, AI model-related, governance, regulatory or other? Please provide details.  

2. In your opinion, would the FCA proposal for AI Live Testing address potential AI deployment challenges?
   Are there particular areas we should focus on as part of AI Live Testing? This could be either certain types of AI models, AI evaluation techniques, outcome assessment strategies or particular financial services sectors.
   Is there more we could do?

3. Is there any other feedback you would like to share with us?
   When providing feedback, please include as much detail as possible and provide evidence for your responses where possible to do so.

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