The Financial Conduct Authority has announced the second tranche of firms selected to join AI Live Testing.
Eight new firms, including Barclays, Experian, Lloyds Banking Group and UBS, have been chosen by the regulator to live test AI applications.
The FCA is working with Advai, a specialist in automated AI assurance, to provide the testing, with the aim of helping successful applicants explore key questions around risk management and live monitoring to support the responsible deployment of AI for consumers and markets.
It said the applications reflect the fast-evolving nature of the technology, with a diverse range of AI models underpinning use cases from agentic AI and small language models to emerging solutions such as neurosymbolic AI.
The first cohort joined live testing at the end of last year. The group included Gain Credit, Homeprotect, part of the Avantia Group, NatWest, Monzo, Santander, Scottish Widows, part of Lloyds Banking Group and Snorkl.
Applications for the second cohort opened in January 2026, with firms beginning testing in April.
Firms in the second group will test both customer-facing and business-to-business use cases, including AI-enabled targeted support for investments, credit score insights for consumers, agentic payments, anti-money laundering detection and Know Your Customer.
Testing will conclude by the end of the year, with an evaluation report published in the first quarter of 2027.
Jessica Rusu, chief data, information and intelligence officer at the FCA, said: “We’re continuing to collaborate with firms to support the safe and responsible development of AI in UK financial markets.
“With 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.”
The FCA will also publish a good and poor practice report for AI in financial services later this year.
Nick Eatock, CEO of Intelliflo, said: “The FCA’s expansion of its AI Live Testing cohort demonstrates how quickly AI is moving from experimentation into real-world application across financial services. It’s encouraging to see the regulator and firms working together, as collaboration will be key to building confidence and ensuring these tools are deployed responsibly.
“Within the advice profession, we’re already seeing AI used to reduce administration, improve data insight and support more personalised client engagement. But it needs clear oversight and accountability to ensure, and evidence, that AI is enhancing advice rather than undermining it.”
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