The FCA is working with Advai to run its AI Live Testing<\/a> programme, which allows firms to examine risk management and monitoring approaches during deployment.<\/p>\n Applications reflect a range of AI models, including agentic AI, small language models, and neurosymbolic systems.<\/p>\n Use cases in the second cohort cover both customer-facing and business-to-business services, such as investment support, credit insights, payments, anti-money laundering detection, and Know Your Customer processes.<\/p>\n \u201cWe\u2019re continuing to collaborate with firms to support the safe and responsible development of AI in UK financial markets,\u201d<\/p>\n said Jessica Rusu, Chief Data, Information and Intelligence Officer at the FCA.<\/p>\n \u201cWith tailored support from the FCA and Advai, the initiative reflects our commitment to supporting the pace of change in AI, whilst demonstrating how regulators and industry can work together to harness innovation responsibly.\u201d<\/p>\n The FCA said it will publish a report on good and poor practice in AI for financial services later in 2026.<\/p>\n The announcement coincides with the release of the FCA\u2019s Innovation Insights report<\/a>, which outlines developments in UK fintech and findings from its innovation services.<\/p>\n Applications to the FCA\u2019s Regulatory Sandbox<\/a> and Innovation Pathways<\/a> rose 49% year-on-year. The report also shows that fintech firms are driving demand for these services, particularly in areas such as AI.<\/p>\n Applications for the second cohort of AI Live Testing opened in January 2026, with testing starting in April.<\/p>\n The programme will run until the end of the year, with an evaluation report expected in the first quarter of 2027.<\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n![\"Jessica](\"https:\/\/www.europesays.com\/ch\/wp-content\/uploads\/2026\/04\/Jessica-Rusu-150x150.jpg\")
<\/a>Jessica Rusu<\/p>\n