Abstract image of office with moving lights
AI Live Testing now open for applications
At the FCA, we’re providing a structured but flexible space[2] where firms can test AI-driven services in real-world conditions, all with our regulatory support and oversight and help from our technical partner, Advai. Collaboration and communication[3] is at the heart of what we are doing.
The first cohort joined AI Live Testing[4] in October last year. We opened a second application window[5] on 19 January 2026 and are now inviting applications.
Moving on from 'POC paralysis'
AI Live Testing is for firms with mature proof of concepts (POCs) who are ready to test in controlled market environments, with a view to imminent market deployment.
Through live testing we want to help UK innovators move safely beyond 'POC paralysis', or what is often described as 'perpetual pilots'.
What we’re actually testing
We’re often asked if we’re testing foundation models as part of AI Live Testing. We distinguish between the AI system and the AI model. That’s because we think the risks and benefits of an AI use case can only ever be understood in the context of its specific use case, ie at the enterprise level.
We broadly define the AI system as: the actual AI model, information on the deployment context and core risks (in the deployment context); governance and human in-the-loop considerations, evaluation techniques as well as the input and output controls. This means AI Live Testing takes a holistic approach to AI design and deployment, at the level of the deploying enterprise, rather than a narrow focus on the model itself.
How AI Live Testing works in practice
Participating firms get AI technical and regulatory support, working with subject matter experts who know about financial services regulation, AI systems testing and validation. Participation includes 3 sequential phases:
- Discovery
- Framework validation
- AI system testing (including shared evaluation)
We focus on both quantitative and qualitative factors to get a truly holistic understanding of the AI system.
What’s in it for us
It’s clearly good business practice to test an AI system against its desired outcome. But, for us as a regulator, it also increases our understanding of the debate around safe and responsible AI. One of our key questions as part of AI Live Testing is how to translate principles into safe and responsible AI outcomes for financial consumers and markets. We can only do this by working with firms to establish a consensus on the way forward.
AI Live Testing also allows firms to share with us any challenges they are having interpreting and aligning with the regulatory landscape. This gives us material intelligence into what’s happening on the ground, including key risks. This helps us productively adapt and evolve in response to real industry behaviour, which is vital for any major technology shift.
How to apply
Applications for the second AI Live Testing cohort are open until 2 March 2026.
See our Terms of Reference (PDF)[6] for more details.
Testing starts from April 2026. We’ll notify successful firms by mid-March 2026.
Apply to take part in AI Live Testing[7]
If you have any questions about AI Live Testing, please contact us at: [email protected].