Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many firms have participated in the Financial Conduct Authority's Supercharged Sandbox and AI Live Testing; what outcomes have been recorded; and whether the FCA will publish an evaluation.

The first cohort of the Financial Conduct Authority’s (FCA) Supercharged Sandbox had 22 participating firms. The second cohort, which is currently ongoing, has 21 participating firms.

The Sandbox helps the FCA and industry better understand how emerging AI technologies can be used safely and responsibly in financial services. Specifically, participants in the first cohort reported building prototypes, validating AI models, conducting technical demonstrations and preparing solutions for future pilots.

In total, 17 firms have participated in AI Live Testing (AILT). The participating firms who have agreed to be named are publicly available on the FCA’s website at https://www.fca.org.uk/news/press-releases/fca-helps-firms-test-ai-safely (Cohort 1) and https://www.fca.org.uk/news/press-releases/fca-announces-second-cohort-ai-live-testing (Cohort 2).

Many of the AI applications tested as part of the first cohort focus on retail financial services including use cases to harness AI for debt resolution or financial advice. Firms in the second cohort are testing both customer-facing and business-to-business use cases, including AI-enabled targeted support for investments, credit score insights for consumers, agentic payments, anti-money laundering detection, and Know Your Customer. A number of firms have also publicly disclosed the benefits of working with the FCA on safe and responsible AI.

The FCA plan to publish evaluation reports of the Supercharged Sandbox and AILT in Q1 2027. The FCA will also be hosting a second public showcase event at their offices on 25 and 26 November to highlight emerging use cases and lessons from the process for industry.