UK regulator selects firms for second cohort of AI testing programme in financial services
FCA has expanded its AI Live Testing programme with a second cohort of firms including major financial institutions.
The Financial Conduct Authority (FCA) has selected eight firms to join the second cohort of its AI Live Testing programme, with trials beginning in April 2026. The announcement was made at UK FinTech Week.
The initiative allows participants to test AI applications under regulatory oversight, with a focus on risk management and live monitoring. FCA is working with AI assurance specialist Advai to support the deployment of systems across financial markets.
Jessica Rusu, chief data, information and intelligence officer at FCA, said the programme reflects collaboration between regulators and industry. She added that FCA continues to work with firms to support the safe and responsible development of AI in UK financial markets.
The second cohort includes Barclays, Experian, Lloyds Banking Group, UBS, Aereve, Coadjute, GoCardless and Palindrome. FCA noted that use cases include targeted investment support, credit scoring insights, anti-money laundering detection and agentic payments.
FCA will also use the programme to examine emerging concepts, such as targeted support, a lighter-touch regulatory category aimed at addressing the UK’s advice gap. It reported that applications to its innovation services, including the Regulatory Sandbox and Innovation Pathways, increased by 49 percent year on year. A report on AI adoption practices is expected later in 2026, with a full evaluation of the cohort due in 2027.
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