FCA launches first AI safety testing programme for financial firms #
The UK Financial Conduct Authority (FCA) has unveiled its first industry-wide AI testing initiative to help financial services firms assess the safety, reliability, and market impact of artificial intelligence systems, according to Investment Week. The programme will allow participants to evaluate AI models in controlled environments, focusing on risks such as bias, model drift, operational failures, and potential consumer harm
The FCA said the initiative is designed to give firms a clearer framework for deploying advanced AI tools — including generative and predictive models — while ensuring compliance with existing regulatory obligations. The tests will examine how AI behaves under stress scenarios, how it influences decision-making, and whether appropriate governance controls are in place
The move reflects growing regulatory attention on AI adoption across banking, insurance, investments, and payments. By creating a structured testing regime, the FCA aims to increase transparency and maintain market integrity as AI becomes more deeply embedded in financial operations.