The UK’s financial services watchdog has opened applications for the second round of its AI live testing service.

The Financial Conduct Authority (FCA) describes the service as the "first of its kind" in the sector to help firms who are ready to use AI.

In December, NatWest, Monzo, Santander, Scottish Widows, Gain Credit, Snorkl, and the Homeprotect part of the Avantia Group were named as the first group to take part in the AI Live Testing initiative.

Participating firms in the second cohort will begin trials in April this year.

The scheme gives firms access to tailored support from the FCA's regulatory team, as well as its technical partner Advai, to build, evaluate and roll out "safe and responsible" AI applications.

Advai is a UK-based AI company specialising in automated testing, evaluation and assurance of AI systems.

The regulator says that the service helps firms to consider key questions around evaluating AI including governance, risk management and monitoring to help ensure that AI is deployed safely and responsibly for consumers and markets.

AI Live Testing complements the organisation's existing Supercharged Sandbox which helps firms who are in the discovery and experimentation phase with AI.

Some of the applications tested in the first round focused on retail financial services, including AI that supports debt resolution or financial advice.

Financial institutions taking part in the initial stage of the scheme also assessed the potential for AI to help improve customer engagement, streamline complaints handling, and help consumers make smarter spending and saving decisions.

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