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UK financial services firms will be encouraged to experiment with artificial intelligence (AI) as part of the Financial Conduct Authority’s (FCA) strategy to support economic growth through technological innovation.
The “Supercharged Sandbox”, launched in collaboration with American technology giant Nvidia, builds on the existing digital sandbox infrastructure provided by NayaOne, and will be available to any financial services firm that wants to experiment with AI, the FCA said.
Firms can apply for the sandbox through the FCA website, and the experiments, which will use Nvidia accelerated computing and Nvidia AI enterprise software, will begin in October.
Jessica Rusu, the FCA’s chief data, intelligence and information officer, said the regulator would help firms harness AI to benefit markets and consumers, while supporting economic growth.
“This collaboration will help those that want to test AI ideas but who lack the capabilities to do so”, she added.
An optimistic view of AI
The FCA is optimistic about AI’s contribution to the British economy and has already shown its interest in deeper engagement with firms in the area.
The Supercharged Sandbox is part of a project to put AI at the heart of the financial services sector in the UK.
Chris Williams, partner at Clyde & Co, said the FCA had been contemplating an initiative such as this since the government emphasised its commitment to positioning the UK as the global hub of innovation.
Williams said: “It’s clear that the FCA’s ambition is to serve as a genuine facilitator for growth, rather than a dogmatic and reactive regulator, focused instead on outcomes over restrictions. Innovation without guardrails, especially within the financial sector, would not sit comfortably within the known risk profile of the overwhelming majority of consumers.”
In April 2025, the FCA set out a proposal for AI Live Testing as part of the existing AI Lab.
Its goal is to support firms in deploying AI responsibly and safely in order to achieve positive outcomes for UK consumers and markets.
However, the FCA’s enthusiasm for AI contrasts with legislators’ concerns about its safety in financial services
Lawmakers in the UK have raised concerns over the use of AI in financial services, warning that without robust safeguards it could put vulnerable consumers at risk and undermine trust in the sector.
Prioritising AI
At a hearing before the Treasury Select Committee in May, AI emerged as a priority, with Labour, Conservative and Liberal Democrat members of parliament (MPs) all raising concerns about its use in the banking industry.
Last year, a joint survey by the Bank of England and the Financial Conduct Authority (FCA) found that 75 percent of firms in the sector are already using AI, with another 10 percent planning to adopt it within the next three years, showing that this is a live issue.
Regulatory uncertainty presents a further bump in the road towards the full deployment of AI in financial services.
In March, the FCA and Information Commissioner’s Office (ICO) jointly issued a ‘Dear CEO’ letter to trade association leaders, responding to regulatory uncertainty surrounding artificial intelligence (AI) in financial services.
The letter, signed by the Information Commissioner John Edwards and FCA chief executive Nikhil Rathi, outlined plans for a high-level roundtable intended to address the key challenges posed by AI and help firms innovate while remaining compliant with UK financial and data protection regulations.
The roundtable, held in May 2025, featured discussion of the challenges firms face when seeking to deploy AI, as well as the ways regulators can support responsible innovation.
The FCA’s latest move underlines the regulators’ commitment to a proactive approach to addressing AI-related concerns and ensuring that the UK remains a global competitor for financial innovation.
As AI deployment in financial services accelerates, the FCA has emphasised its commitment to fostering responsible innovation, and we anticipate further activity in this area.
