The Financial Conduct Authority said on Tuesday that Barclays Plc, Lloyds Banking Group Plc and UBS Group AG are among the newest participants authorized to create and test artificial intelligence applications under its AI Lab initiative.
The FCA described the Lab as a framework to examine risks and help produce tools intended to protect consumers and support market integrity while formal regulatory rules remain undeveloped. Firms in the program will assess multiple model types - including agentic AI and neurosymbolic AI, the latter of which blends machine learning with structured reasoning, according to the regulator.
"We’re continuing to collaborate with firms to support the safe and responsible development of AI in UK financial markets," Jessica Rusu, the FCA’s chief data, information and intelligence officer, said in a statement.
According to the FCA, Lloyds has engaged with the regulator on its approach to safe AI deployment, including exploring potential uses such as financial guidance. Britain’s largest mortgage lender reportedly deployed thousands of employees to test an AI-powered financial assistant aimed at helping customers manage spending, saving and investments.
In addition to Barclays, Lloyds and UBS, the latest group approved for testing includes Experian Plc (LON:EXPN), Aereve, Coadjute, GoCardless and Palindrome. The regulator said the trials will run within a controlled live-market setting that may involve real customers, with the testing phase expected to conclude by the end of this year.
The FCA noted that an earlier cohort - which included NatWest Group Plc (LON:NWG), fintech Monzo Bank and Lloyds’ pension arm Scottish Widows - had carried out tests for about six months.
The program is positioned as an interim measure to identify and mitigate risks from real-world AI use in financial services, and to inform future regulatory decisions. The FCA’s description emphasizes practical assessment in the absence of codified rules, rather than setting new regulatory obligations at this stage.