NatWest and Santander are among the firms that have signed up to the Financial Conduct Authority’s (FCA’s) new artificial intelligence (AI) testing scheme.

The AI Live Testing initiative helps firms who are ready to use AI in UK financial markets.

Participating firms receive tailored support from the FCA’s regulatory team and its technical partner Advai to develop, assess and deploy safe and responsible AI.

Gain Credit, Homeprotect, part of the Avantia Group, NatWest, Monzo, Santander, Scottish Widows, part of Lloyds Banking Group, and Snorkl are the first group to take part.

The regulator said that AI testing helps firms address questions around governance and risk management to make sure AI is used safely and responsibly.

Many of the AI software being tested is in retail financial services, for example to help with giving financial advice or debt resolution.

Other uses are to improve customer engagement, speed up complaints handling and help consumers make smarter spending and saving decisions, the FCA said.

FCA chief data, information and intelligence officer Jessica Rusu said: “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.”

The FCA said the project will help the regulator better understand how AI could shape UK financial markets and inform its future approach to the technology.

Applications for the second cohort for AI Live Testing will open in January 2026 and participating firms will be able to start testing in April.

Yesterday tThe Financial Ombudsman Service wrote off £900,000 for an abandoned artificial intelligence tool, its latest accounts show.