FCA publishes engagement paper for AI live testing
The Financial Conduct Authority (FCA) has published an engagement paper for its proposal for AI Live Testing. The paper outlines a plan to support the safe and responsible deployment of AI models in UK financial markets through a controlled live testing environment. As part of the existing AI Lab, the initiative involves the FCA’s regulatory and technical teams working directly with firms to test AI models using methods such as output-driven validation. The paper invites feedback from all stakeholders, with particular emphasis on the perspectives of chief information officers, chief AI officers, chief data officers, and AI solution providers. Responses are sought by 10 June 2025. The proposal is aligned with the UK Government’s AI Opportunities Action Plan, which outlines recommendations for leveraging AI to enhance economic growth and efficiency.