The Financial Conduct Authority (FCA) has announced it is working with major firms to test Artificial Intelligence (AI) in a safe place to better understand the potential benefits and risks.

The AI Live Testing initiative, the first of its kind in the financial sector, has been set up to help firms that 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.  

AI testing is helping firms to address key questions around evaluation frameworks, live monitoring, governance and risk management to ensure that AI is deployed safely and responsibly for consumers and markets.  

Many of the AI applications currently being tested as part of the project focus on retail financial services, including use cases to harness AI to support debt resolution or provide financial advice. Applications are also exploring the potential for AI to help improve customer engagement, streamline complaint handling and help consumers to make smarter spending and saving decisions.  

Jessica Rusu, Chief Data, Information and Intelligence Officer at the FCA, 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.”  

Source: Credit Connect