Lloyds Banking Group PLC (LSE:LLOY) and Barclays PLC (LSE:BARC) are among the companies taking part in "live testing" of artificial intelligence tools under the watchful eye of the UK financial watchdog.
The lenders are among eight firms, alongside Experian PLC (LSE:EXPN), UBS (NYSE:UBS) and Go-Cardless, chosen by the Financial Conduct Authority for the second round of testing AI applications under regulatory supervision.
The firms are testing AI systems to assess risks in simulated real-world conditions, the regulator said, providing support for those companies that say they are ready to use it in live markets.
Testing by the consort began this month and will run through to the end of the year, with findings due in early 2027.
Companies are testing investment support tools, credit insights, anti-money laundering detection and 'agentic AI' payments
A previous cohort included NatWest, Monzo, Santander, Snorkl and Lloyd's Scottish Widows arm.
Jessica Rusu at the FCA said support from the regulator and AI testing specialist Advai, "the initiative reflects our commitment to supporting the pace of change in AI, whilst demonstrating how regulators and industry can work together to harness innovation responsibly".
The regulator said applications to its innovation services rose 49% year-on-year, highlighting strong demand for AI-driven financial technology.