The FCA has confirmed the second cohort of companies selected to join its AI Live Testing programme.

Eight new firms, including Barclays, Experian, Lloyds Banking Group (Scottish Widows), and UBS, have been chosen by the regulator to live test their AI applications in support of safe and responsible deployment.

The FCA said it will once again work with its technical partner Advai, a London-based AI safety and assurance firm, to deliver the second round of the AI Live testing scheme, which also includes participation from Go-Cardless, Aereve, Coadjute, and Palindrome.

The initiative aims to help businesses explore key concepts around AI risk management, with live monitoring to support the safe, controlled deployment of AI for both consumers and markets. 

Firms in the second group are testing both customer-facing and business‑to‑business use cases, including AI-enabled targeted support for investments, credit score insights for consumers, agentic payments, anti-money laundering detection, and Know Your Customer. 

The FCA said these applications reflect the fast-evolving nature of AI technology, with a diverse range of models underpinning use cases, from agentic AI and small language models to edge solutions such as neurosymbolic AI. 

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“We’re continuing to collaborate with firms to support the safe and responsible development of AI in UK financial markets,” said Jessica Rusu, chief data, information and intelligence officer at the FCA.

“With tailored support from the FCA and Advai, the initiative reflects our commitment to supporting the pace of change in AI, whilst demonstrating how regulators and industry can work together to harness innovation responsibly.”

The announcement coincides with the publication of the FCA’s Innovation Insights Report, which highlights how FinTech innovation is evolving in the UK, with the regulator due to publish a Good and Poor Practice report for AI in financial services later this year to support firms in adopting the technology. 

Applications for the AI Live Testing second cohort opened in January 2026, with firms beginning testing in April. Testing will conclude by the end of the year, with an evaluation report published in Q1 2027.