The FCA has announced the eight financial firms which will take part in its second cohort for AI live testing.
The regulator is working with major firms to test AI in a safe place to better understand the potential benefits and risks.
Participating firms are handed tailored support from the FCA’s regulatory team and its technical partner Advai, a London-based specialist in automated AI assurance, to develop, assess and deploy safe and responsible AI.
The first cohort joined live testing last October. They were Gain Credit, Homeprotect, part of the Avantia Group, NatWest, Monzo, Santander, Scottish Widows, part of Lloyds Banking Group, and Snorkl.
The FCA opened applications for the next group of testers in January and has today confirmed the second group of firms selected. They are Aereve, Coadjute, Barclays, Experian, Go-Cardless, Lloyds Banking Group (Scottish Widows), UBS and Palindrome.
The regulator said 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.
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.
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.”
Testing will conclude by the end of the year, with an evaluation report published in Q1 2027.
The FCA will also publish a Good and Poor Practice report for AI in financial services later this year to support firms in the safe and responsible adoption of the developing technology.
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.