FCA Boosts AI Innovation with Turbocharged Sandbox and Live Testing

Published Date : 20/09/2025 

The UK Financial Conduct Authority (FCA) has unveiled significant progress in its initiatives to support AI experimentation and innovation, including the 'Supercharged Sandbox' and 'AI Live Testing' programs. 

The UK Financial Conduct Authority (FCA) has taken significant steps to support the growing field of artificial intelligence (AI) with the launch of its 'Supercharged Sandbox' and 'AI Live Testing' programs. Jessica Rusu, the FCA’s chief data, information, and intelligence officer, presented an update on these initiatives at a fintech conference in the City of London.

Jessica Rusu addressed the audience at the ‘Future of Fintech’ event, which took place on September 17, 2023. She discussed the FCA’s plans for the Supercharged Sandbox, a test space designed to help firms experiment safely with AI to support innovation. The sandbox, which is being run in partnership with technology giant Nvidia, received over 130 applications from both well-known companies and smaller fintech firms. The proposed use cases include combatting financial crime, improving financial inclusion, open banking, open finance, and digital identity.

Firms will begin experimenting in the sandbox from October, gaining access to NVIDIA’s advanced computing and AI platform. The aim is to assist companies in the early stages of AI development, helping them to explore and experiment with new technologies in a safe and controlled environment.

In addition to the Supercharged Sandbox, the FCA has also launched the 'AI Live Testing' initiative as part of its existing AI Lab. This program, which was proposed in April, allows firms to collaborate with the regulator to test AI applications in real-world scenarios. The FCA published a 17-page feedback statement on September 9, summarizing the responses from the industry. The feedback indicated that the initiative would help address first-mover reluctance and support responsible AI adoption.

The FCA plans to work with two cohorts of firms, with the first cohort starting in early October. Rusu emphasized the transparency of the process, stating that the FCA will share insights with the wider industry and use the findings to inform its broader regulatory work.

Rusu highlighted the unique and novel approach of the FCA, noting that both the Supercharged Sandbox and AI Live Testing are commitments to working with firms at various stages of their AI journey. This approach aims to support safe and responsible AI adoption in the UK.

In addition to AI, cryptocurrency regulation remains a key focus for the FCA. The regulator published a 160-page consultation titled 'Application of FCA Handbook for Regulated Cryptoasset Activities' on September 17. Rusu stated that while crypto remains a high-risk investment, the FCA's plans will better protect consumers from poor business practices. The proposals aim to boost trust in the sector and position the UK as a global leader in crypto regulation. The rules are designed to be proportionate, allowing UK firms to compete internationally.

The FCA's efforts extend beyond AI and crypto. The UK government's 'Financial Services Growth & Competitiveness Strategy', published in July, committed the FCA and the Prudential Regulation Authority (PRA) to launch a 'Scale-up Unit'. Rusu announced that the first step is to run a 'Scale-up Summit' at the end of the month. The summit will address real-world barriers to scaling in the UK and explore how firms have overcome current challenges. The FCA is also launching a 'Smart Data Accelerator' to promote the development and implementation of open finance and broader smart data initiatives in the UK. The accelerator will focus on SME finance and mortgages, with the FCA working closely with the Information Commissioner’s Office to address any cross-regulatory issues.

The FCA regulates the conduct of about 42,000 firms and supervises 41,000 of these for financial risk, making it Europe’s largest prudential regulator. The FCA's 'Strategy 2025-2030', published in March, includes a commitment to embracing technology to become a smarter regulator. 

Frequently Asked Questions (FAQS): 

Q: What is the FCA’s Supercharged Sandbox?

A: The FCA’s Supercharged Sandbox is a test space designed to help firms experiment safely with AI to support innovation. It is being run in partnership with technology giant Nvidia and aims to assist companies in the early stages of AI development.

Q: What is the AI Live Testing initiative?

A: The AI Live Testing initiative is part of the FCA’s AI Lab and allows firms to collaborate with the regulator to test AI applications in real-world scenarios. The FCA plans to work with two cohorts of firms, with the first cohort starting in early October.

Q: What is the FCA’s approach to cryptocurrency regulation?

A: The FCA is focusing on regulating cryptocurrency to protect consumers from poor business practices and to boost trust in the sector. They published a 160-page consultation titled 'Application of FCA Handbook for Regulated Cryptoasset Activities' to address these issues.

Q: What is the Scale-up Unit and Summit?

A: The Scale-up Unit is a commitment by the FCA and the Prudential Regulation Authority (PRA) to support the growth of fintechs in the UK. The first step is to run a 'Scale-up Summit' at the end of the month to address real-world barriers to scaling in the UK.

Q: What is the Smart Data Accelerator?

A: The Smart Data Accelerator is a program launched by the FCA to promote the development and implementation of open finance and broader smart data initiatives in the UK. It will focus on SME finance and mortgages, with the FCA working closely with the Information Commissioner’s Office to address any cross-regulatory issues. 

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