The Financial Conduct Authority is to launch a live AI testing service to help firm deploy safe and responsible artifical intelligence models.
As a new component of the FCA's AI Lab, the service aims to fill a testing gap in the market that is slowing adoption of AI by financial firms.
The live testing service would allow firms to collaborate with the regulator while they check that their new AI tools are ready to be used. It would also provide the FCA with intelligence to better understand how AI may impact UK financial markets.
The FCA is seeking views from firms about the initiative, which would run for 12 to 18 months, with plans to launch in September 2025. It comes amid concerns that onerous compliance requirements are stifling investment in artificial intelligence.
Jessica Rusu, the FCA’s chief data, intelligence and information officer, says: "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."