The Financial Conduct Authority has launched its AI Live Testing initiative, working with major firms to trial artificial intelligence in live UK financial markets in a controlled setting to better understand benefits and risks. The programme provides tailored regulatory support alongside the FCA’s technical partner Advai, with the aim of helping firms develop, assess and deploy AI safely and responsibly and informing the FCA’s future approach to the technology. Gain Credit, Homeprotect (Avantia Group), NatWest, Monzo, Santander, Scottish Widows (Lloyds Banking Group) and Snorkl are participating in the first cohort. Testing is focused on practical questions such as evaluation frameworks, live monitoring governance, and risk management, with early use cases concentrated on retail financial services including debt resolution support and provision of financial advice, as well as improving customer engagement, streamlining complaints handling and helping consumers make spending and saving decisions. AI Live Testing sits alongside the FCA’s Supercharged Sandbox, which supports firms earlier in the AI discovery and experimentation phase. Applications for a second cohort will open in January 2026, with participating firms able to begin testing in April 2026.