UK regulator to launch live AI testing lab to help firms go public.
Il Financial Conduct Authority (FCA) is set to launch a live artificial intelligence testing service in September 2025, giving UK financial firms a rare opportunity to test their AI models with regulatory oversight before going public.
The program is designed to help companies safely and responsibly deploy consumer-facing and market-facing AI tools, while offering the FCA valuable insight into how artificial intelligence might reshape financial markets.
AI is becoming central to finance from fraud detection to investment analysis, but regulation is still catching up. By launching this live testing environment, the FCA is stepping in to close the “testing gap” and ensure AI tools are safe, compliant, and effective before hitting the real world.
- The service will run for 12 to 18 months, as part of the FCA’s expanding AI Lab
- Companies will collaborate directly with the FCA to test how their AI systems perform in a live, but controlled environment
- The FCA will collect real-time intelligence to monitor risks and better understand AI’s impact on UK markets
The FCA will provide firms with ongoing guidance, helping them align AI deployments with compliance standards and consumer protections.
Jessica Rusu, FCA’s Chief Data, Intelligence and Information Officer, said: “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.”
Part of the plan
The testing service supports the FCA’s five-year strategy, which aims to modernize financial oversight, promote innovation, and keep the UK’s financial services globally competitive. It builds on recent initiatives like the My FCA portal, which streamlines regulatory reporting, and a proposed crypto authorisation regime coming in 2026.
What’s next
- The FCA is accepting feedback on the testing service until June 10
- Launch is planned for September 2025, following adjustments based on industry input
As AI rapidly reshapes financial services, the FCA’s live testing lab offers a path to innovation that doesn’t cut corners on safety. It’s a major move to position the UK as a leader in responsible AI adoption and to help firms move faster, with fewer surprises.
