Artificial Intelligence (AI) is revolutionizing industries, including financial services, by enhancing decision-making processes and transforming customer experiences. In the UK financial sector, AI holds immense potential to drive innovation and improve outcomes. However, its adoption also brings challenges, such as ensuring safe and responsible use, which, if unaddressed, could hinder progress and introduce new risks.

To tackle these concerns, the Financial Conduct Authority (FCA) is proposing AI Live Testing—a practical and collaborative initiative designed to help firms and the FCA work together to develop robust methods for assuring AI systems. This approach aims to balance innovation with safety, fostering trust and confidence in AI-driven solutions within the financial markets.