A recent survey by EY highlights that only five percent of financial leaders in the UK feel they are ahead of the curve in AI adoption. Despite high aspirations to integrate AI into their businesses, most firms are facing significant obstacles in achieving these goals. The survey, which gathered insights from executives at 20 UK financial firms with a combined market cap nearing £200 billion, found that only nine percent of respondents believe their companies are ready for the impending regulations related to AI.
Although 32 percent of executives have accelerated AI adoption in the past year, the workforce remains largely underprepared. The survey revealed that 77 percent of companies acknowledge their employees have limited or no experience with generative AI technologies. Despite this, only 27 percent of firms have established training and upskilling programs, with 63 percent still in the planning phase. This lack of preparedness is a pressing issue, as businesses recognize the potential of AI to improve productivity and efficiency but struggle to implement it effectively.
Anna Anthony, the UK financial services managing partner at EY, emphasized that generative AI is a top priority for financial services executives. While some companies have made substantial progress, many are still struggling to integrate this rapidly evolving technology into their operations. Anthony also stressed that for firms to stay competitive, they must prioritize the development of training programs and establish solid risk and regulatory frameworks.
As AI continues to reshape the industry, 59 per cent of UK executives believe that up to 25 per cent of current financial services roles could be impacted by AI over the next year, with 95 per cent expecting up to 10 percent of positions to become redundant. Despite this, only 27 percent of firms have an established training program, and 36 percent are in the early stages of planning such programs. Surprisingly, 9 percent of firms have no plans to develop a training program at all. Entry-level positions are expected to be the most affected, with 59 per cent of executives predicting a transformative impact on these roles. However, just 14 percent plan to restructure these roles and only 18 percent intend to integrate AI training into their graduate programs.
Preetham Peddanagari, the UK financial services technology consulting leader at EY, noted that many firms are still in the experimental phase of AI integration, despite investments in the technology. Most AI applications to date have been focused on back-office processes, with many banks, asset managers, and insurers lagging behind in both generative AI adoption and regulatory preparedness. Peddanagari emphasized that it is crucial for firms to speed up their plans and ensure that both new and current employees are equipped with the necessary AI skills.
The survey also revealed that 82 percent of executives plan to increase their investment in generative AI over the next six to 12 months. However, concerns about AI integration remain high, with 59 percent of executives worried about the regulatory impact, 50 percent about the limited understanding of AI applications, and 32 percent about the speed of AI development outpacing business integration. Additionally, 68 percent of firms are only partially prepared for AI adoption, and 14 percent have no AI regulatory risk framework in place.
