The UK finance watchdog has announced it is working with major firms to test artificial intelligence (AI) technologies safely to better understand the potential risks and benefits.
The Financial Conduct Authority (FCA) said on Wednesday it has launched the AI Live Testing initiative, a first of its kind scheme in the finance sector to help companies that are ready to use AI in the markets.
Participating firms will receive tailored support from the regulatory team at the FCA and its technical partner for this project, the AI assurance firm Advai.
“Our new AI Live Testing service helps firms who are ready to use AI in live markets. 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,” said FCA chief data, information and intelligence officer Jessica Rusu.
NatWest, Santander, Monzo and subsidiaries of Lloyds Banking Group and Avantia Group are among the first cohort of firms to participate in the initiative.
Through testing, the organisations hope to address key questions around evaluation frameworks, live monitoring governance and risk management ahead of the mass introduction of AI in banking and financial services.
According to the FCA, many of the AI applications currently being tested as part of the project focus on retail financial services, with use cases including using AI to support debt resolution or financial advice. There are also applications looking at AI in customer engagement and service.
