LONDON, June 9 - Financial firms in Britain will be able

to test artificial intelligence tools later this year in a

regulatory "sandbox" launched on Monday by the country's

financial watchdog, part of a broader government strategy to

support innovation and economic growth.

The Financial Conduct Authority (FCA) has partnered with

U.S. chipmaker Nvidia ( NVDA ) to provide access to advanced

computing power and bespoke AI software through what it calls a

"Supercharged Sandbox."

A sandbox refers to a controlled environment where companies

can test new ideas such as products, services or technologies.

The programme is intended to help firms in the early stages

of exploring AI, offering access to technical expertise, better

datasets and regulatory support, the FCA said. It is open to all

financial services companies experimenting with AI.

"This collaboration will help those that want to test AI

ideas but who lack the capabilities to do so," Jessica Rusu, the

FCA's chief data, information and intelligence officer, said.

"We'll help firms harness AI to benefit our markets and

consumers, while supporting 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 ( NVDA ) 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 ( NVDA ),

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 ( NVDA ) full-stack

accelerated computing platform, supporting industry-wide growth

and efficiency."

The testing is set to begin in October.