On 1 July 2025, Jessica Rusu, Chief Data, Information and Intelligence Officer of the United Kingdom Financial Conduct Authority (UK FCA), delivered a speech titled “Harnessing AI and technology to deliver the FCA’s 2025 strategic priorities” at the AI and Digital Innovation Summit during City Week 2025. The speech outlined the UK FCA’s commitment to fostering AI innovation in financial services, emphasizing a pro-growth, proportionate regulatory environment to support technological advancement while ensuring consumer protection and market integrity.
The speech addressed the transformative potential of AI in financial services, focusing on regulatory tools like the Supercharged Sandbox and AI Live Testing to support firms. Rusu emphasized existing frameworks, such as the Senior Managers Regime and Consumer Duty, as sufficient for AI oversight, avoiding the need for new regulations. The remarks targeted financial services firms, fintechs, and innovators, with calls for collaboration through the UK FCA’s AI Lab and upcoming testing initiatives. The speech also signaled forthcoming guidance on fintech scale-up support and synthetic data use.
Rusu discussed that innovation is embedded in the UK FCA’s 2025–30 Strategy, supporting four pillars: attracting new customers, combating financial crime, enhancing regulatory efficiency, and driving economic growth. She noted the UK’s global leadership in financial services, including commercial insurance and fintech, and cited Nvidia CEO Jensen Huang’s description of the UK as a “Goldilocks” zone for AI due to its research, capital, and talent.
Supercharged Sandbox and AI Live Testing
The UK FCA is advancing its regulatory innovation through the Supercharged Sandbox, set to begin testing in October 2025 in collaboration with Nvidia. This initiative offers enhanced computing capabilities, data sets, and tools for firms experimenting with AI, focusing on use cases like financial inclusion, wellbeing, and fraud prevention. Applications are open until 11 August 2025.
AI Live Testing, launching applications in July 2025, complements the Sandbox by supporting firms with proof-of-concept models seeking regulatory comfort for market deployment. Rusu highlighted strong industry support, with 70 responses to the UK FCA’s consultation paper, reflecting enthusiasm for collaboration, transparency, and access to synthetic data and shared tools.
AI Lab and Industry Engagement
Launched in October 2024, the UK FCA’s AI Lab fosters responsible AI adoption through components like the AI Sprint, Input Zone, and Spotlight, which facilitate stakeholder input and showcase real-world applications. The Lab aims to build confidence in AI investments that drive growth and positive consumer outcomes. Rusu also referenced the upcoming second report from the UK FCA’s synthetic data expert group, offering industry-led insights.
Regulatory Approach: No New Rules Needed
Rusu addressed concerns about regulatory uncertainty, stating that existing UK FCA frameworks, including the Senior Managers Regime and Consumer Duty, provide adequate oversight for AI in financial services. This approach, she argued, maintains regulatory agility amid rapid technological change, giving the UK a competitive edge.
Rusu cautioned that while AI offers opportunities, it also risks abuse. She urged firms to consult the UK FCA if concerned about their AI development, emphasizing the regulator’s history of supporting innovation.
UK FCA’s Internal AI Adoption
The UK FCA is leveraging AI internally to enhance efficiency, using large language models for text analysis in authorizations and supervision, and predictive AI in its supervision hub. AI voice bots now guide consumers to agencies like the Financial Ombudsman Service (FOS) and Financial Services Compensation Scheme (FSCS).
The UK FCA expects to announce further support for fintech scale-ups later in 2025. The synthetic data expert group’s second report will provide guidance on navigating synthetic data use. AI Live Testing applications open in July 2025, with collaboration starting in September 2025.
(Source: https://www.fca.org.uk/news/speeches/harnessing-ai-and-technology)
