News
FCA to pilot ‘AI Live Testing’ initiative
Introduction
The Financial Conduct Authority (FCA) will pilot an initiative inviting financial firms in the UK to securely develop, assess and deploy artificial intelligence (AI) solutions as part of their business operations. AI Live Testing aims to accelerate the safe and responsible adoption of AI in the UK financial sector to drive economic growth and innovation.
What is AI Live Testing?
FCA AI Live Testing, as part of the AI Lab, will explore the challenges that firms face before live AI deployment in UK financial markets. It aims to foster collaboration, develop shared understanding, and explore evaluation methods (e.g. model metrics) and potential frameworks or benchmarks that may facilitate safe and responsible AI use throughout its lifecycle, from input quality control to outcomes measurement. Having worked on AI safety and testing since 2018, and with experience evaluating models for the UK government and leading labs such as OpenAI, Faculty was ideally placed to support the conceptualisation of the AI Live Testing programme and inform its design.
As part of AI Live Testing, FCA regulatory and technical teams will work directly with firms, providing tailored support for developing, assessing and deploying live AI models in UK financial markets. This may include individual guidance, waivers or modifications to requirements, as appropriate.
Empowering Financial Institutions
FCA
"With AI Live Testing, we hope to empower financial organisations to explore how safe and responsible AI deployment can support their business objectives and lead to positive outcomes for consumers and markets in the UK."
Henrike Mueller, Manager of the AI Strategy Team
Providing organisations with confidence
Faculty
"We are delighted that the FCA will pilot this initiative as we know the impact AI can have in financial services. We are proud to have drawn on our extensive track record of testing and evaluating the world’s leading AI models for labs such as Open AI, as well as implementing AI in the financial services sector, to inform the design of this AI Live Testing initiative. The opportunity these technologies present is significant - this initiative will provide organisations with the tools, frameworks and confidence to deploy frontier AI safely and responsibly."
David Bholat, Director for Financial Services
How long will AI Live Testing run for?
AI Live Testing will initially run over a 12 month period, with cohorts of firms live testing for approximately 6 months each. An evaluation report will be published at the end of the pilot.
Who can apply for AI Live Testing?
AI Live Testing is open to all firms who provide and support financial services in the UK. In a new Engagement Paper released today, the FCA outlined the full scope and eligibility criteria. For more information and details on how to apply, download the FCA’s AI Live Testing engagement paper here.