LONDON, April 21, 2026 — The UK Financial Conduct Authority said eight firms, including Barclays, Experian, Lloyds Banking Group and UBS, have been selected for the second cohort of its AI Live Testing programme, which is intended to support the safe and responsible deployment of artificial intelligence in financial services, according to a statement published Tuesday.
The regulator said the initiative provides participating firms with regulatory and technical support as they test AI applications through the programme. The FCA is working with technical partner Advai, a London-based company focused on automated testing, evaluation and assurance of AI systems.
Second cohort includes eight selected firms
The FCA said the second cohort includes Aereve, Coadjute, Barclays, Experian, GoCardless, Lloyds Banking Group (Scottish Widows), UBS and Palindrome. The regulator said firms in the group were selected to test AI applications across customer-facing and business-to-business use cases.
Use cases cover payments, compliance and consumer services
According to the FCA, use cases in the second cohort include AI-enabled targeted support for investments, credit score insights for consumers, agentic payments, anti-money laundering detection and KYC processes. The regulator said applications reflected a range of technologies, including agentic AI, small language models and neurosymbolic AI.
“We’re continuing to collaborate with firms to support the safe and responsible development of AI in UK financial markets,” Jessica Rusu, the FCA’s chief data, information and intelligence officer, said in the statement.
Innovation demand rises across FCA programmes
The announcement coincided with publication of the FCA’s Innovation Insights report. The regulator said applications to its Regulatory Sandbox and Innovation Pathways increased 49% from the previous year, with demand particularly strong in areas such as AI.
Testing to conclude in 2026 with report due in Q1 2027
Applications for the second cohort opened in January 2026, with firms beginning testing in April. The FCA said testing will conclude by the end of the year, followed by an evaluation report in the first quarter of 2027.
The regulator also said it plans to publish a good and poor practice report for AI in financial services later in 2026.
