NatWest, Monzo, Santander, Scottish Widows, Gain Credit, Snorkl, and the Homeprotect part of the Avantia Group have been named as the first group to take part in the Financial Conduct Authority’s (FCA) AI Live Testing initiative.

The “first of its kind” scheme gives firms access to tailored support from the UK watchdog’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.

Some of the applications currently being tested focus on retail financial services, including AI that supports debt resolution or financial advice.

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

“Our new AI Live Testing service helps firms who are ready to use AI in live markets," said Jessica Rusu, chief data, information and intelligence officer, FCA. "By working closely with firms and our technical partner Advai, we’re helping to make sure that AI is developed and deployed safely and responsibly in UK financial markets.”

The testing initiative builds on the FCA's Supercharged Sandbox, which helps companies who are in the AI discovery and experiment phase.

Applications for the second cohort for AI Live Testing will open in January 2026, with participating firms beginning trials in April.

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