The Financial Conduct Authority will look for firms to jointly work with the regulator on artificial intelligence projects fit for UK financial markets from next week.

The watchdog’s AI Live Testing scheme will see the watchdog’s regulatory and technical teams work directly with firms to develop and assess working AI models.

FCA chief data, information and intelligence officer Jessica Rusu (pictured) said: “We’re throwing AI Live Testing into the mix. Applications for AI Live Testing will go live next week.”

Rusu added that the regulator wants to see “how we can help firms deploy safe and responsible AI that will benefit UK consumers and markets”.

Rusu’s comments came in a speech this morning at the AI and Digital Innovation Summit, City Week in London.

The regulator expects to receive applications from firm’s chief information officers, chief AI officers, chief data officers and AI solution providers.

Rusu said firms are keen “for access to synthetic data, shared tools and AI evaluation techniques to help encourage experimentation”.

She pointed out: “Firms have told us collaboration and transparency will be key to success: they want to learn both from us, and from each other.

“That means sharing best practice and sector-specific insights.”

Rusu added: “One theme worth touching on is the question around regulatory uncertainty. Some respondents expressed concerns about potentially ambiguous governance frameworks stopping firms from innovating with AI.

“We have been clear that we believe our existing frameworks, such as the senior manager’s regime and the Consumer Duty, give us oversight of AI in financial services and mean we don’t need new rules.”

However, last month the Financial Conduct Authority and the Information Commissioner’s Office said they planned to draw up new rules on the use of AI across financial services firms.

In a joint statement, FCA chief executive Nikhil Rathi and UK Information Commissioner John Edwards said: “To support good practice into the future we will be developing a statutory code of practice for organisations developing or deploying AI and automated decision-making — enabling innovation while safeguarding privacy.”

They added: “Done right, regulation isn’t a brake on innovation. It’s a bridge, connecting creativity with public trust.

“With the right approach, regulation becomes an enabler: providing the certainty firms need to invest, experiment, and grow responsibly.”