The UK Financial Conduct Authority (FCA) has announced the selection of eight new firms, including Barclays, Experian, Lloyds Banking Group (Scottish Widows), and UBS, for its second cohort of AI Live Testing, aimed at facilitating the safe and responsible deployment of AI applications in financial services. This initiative, in collaboration with technical partner Advai, will allow firms to explore risk management and live monitoring of diverse AI models, addressing both customer-facing and business-to-business use cases such as investment support and anti-money laundering detection. The FCA plans to publish a good and poor practice report for AI in financial services later in 2026 and has noted a 49% increase in applications for its Regulatory Sandbox and Innovation Pathways, reflecting the growing demand for innovation services in the fintech sector. Testing for the second cohort commenced in April 2026 and will conclude by the end of the year, with an evaluation report expected in Q1 2027.
Click here for the official article/release
Disclaimer
The Legal Wire takes all necessary precautions to ensure that the materials, information, and documents on its website, including but not limited to articles, newsletters, reports, and blogs (“Materials”), are accurate and complete. Nevertheless, these Materials are intended solely for general informational purposes and do not constitute legal advice. They may not necessarily reflect the current laws or regulations. The Materials should not be interpreted as legal advice on any specific matter. Furthermore, the content and interpretation of the Materials and the laws discussed within are subject to change.
