Financial firms in the UK will have the opportunity to trial artificial intelligence tools later this year within a regulatory “sandbox” unveiled on Monday by the country’s financial regulator. The initiative is part of a wider government effort to foster innovation and boost economic growth.
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As part of the project, the Financial Conduct Authority (FCA) has teamed up with U.S. chipmaker Nvidia to offer participants access to high-performance computing resources and specialized AI software through what it describes as a “Supercharged Sandbox.”
A sandbox is a controlled environment that allows companies to experiment with new products, services, or technologies in a safe and supervised setting.
According to the Financial Conduct Authority (FCA), the program aims to support firms in the early stages of AI exploration by providing access to technical expertise, improved datasets, and regulatory guidance. It is open to all financial services companies currently testing or developing AI solutions.
“This collaboration will support those eager to explore AI but lacking the necessary resources,” said Jessica Rusu, the FCA’s Chief Data, Information and Intelligence Officer. “Our goal is to help firms leverage AI to benefit markets and consumers, while also contributing to economic growth.”
Finance minister Rachel Reeves has urged Britain’s regulators to remove barriers to economic growth, describing it as an “absolute top priority” for the government.
In April, she said she was pleased with how the FCA and the Prudential Regulation Authority, part of the Bank of England, were responding to her call to cut red tape.
Nvidia said the initiative would allow firms to explore AI-powered innovations in a secure environment, using its accelerated computing platform.
“AI is fundamentally reshaping the financial sector,” said Jochen Papenbrock, EMEA head of financial technology at Nvidia, citing improvements in data analysis, automation and risk management.”
He added that the sandbox will provide firms with a “secure environment to explore AI innovations using Nvidia’s full-stack accelerated computing platform, supporting industry-wide growth and efficiency.”
The testing is set to begin in October.