UK Financial Conduct Authority to Launch Live AI Testing Service in September 2025

The Financial Conduct Authority (FCA) of the UK has revealed that it will introduce the world’s first AI-powered live testing environment to start in September 2025.

The new part of the FCA’s existing AI Lab, is intended to create a safe space for financial companies testing their AI models before releasing them into the market.

The FCA would welcome feedback from firms to determine how the live testing environment could support safe, ethical and resilient use of AI, and how it can be deployed in a way that brings benefit to consumers, the integrity of the UK markets and creates a level playing field.

The announcement reflects the FCA’s ongoing support of innovation in an ever-changing technological world, hand-in-hand with strong regulatory service.

FCA’s Chief Data, Intelligence and Information Officer Jessica Rusu emphasised the strategic significance of this project, saying, “Under our new strategy we have committed to being more data and technology driven and are embracing new technology and innovation. We want our financial firms and their customers to be able to use AI, so we’re creating a safe environment in which to test how they intend to use it.”

The live testing environment will allow companies to work closely with the FCA’s technical and regulatory experts as they test the market-readiness of their AI tools.

This partnership will not only help firms to develop trust in their AI models, but will also provide the FCA with much needed understanding of the potential impact of AI on the financial market. The insights collected will prove valuable when the regulator comes to define future regulation of AI.

The anticipated live test will be a 12 to 18 month time frame and will provide regulatory assistance from companies that are ready to use AI models for consumer-facing applications or market-facing applications.

The pilot forms part of the wider FCA five-year strategy, which promotes an innovation-friendly and competitive approach towards the UK’s financial services, supported by technology. It also ties in with the FCA’s objective to be a more data-led and technologically savvy regulator.”

An engagement paper has been published by the FCA asking for feedback on the potential live AI testing service with responses due by 10 June 2025. There will be a period of consultation for the industry to determine the structure and implementation of this important initiative.

The introduction of a live AI test service in September 2025 is a significant further development on the path to enabling responsible and effective use of AI within the UK financial services sector.