The Rise of AI in the UK’s Financial Services

Latest research by EXL shows that around 89 percent of insurance and banking firms in the UK have implemented AI solutions in the past year. However, these insurers and lenders might face challenges related to data optimisation that could hinder the impact of AI.

Research Findings

• 44 percent of the surveyed financial services leaders have already deployed AI across eight or more business functions, including marketing, business development, and regulatory compliance.
• Nearly 9 in 10 financial services leaders reported investing upwards of £7.9 million in AI over their last fiscal year, with over a third investing £39 million or more.
• Nearly half (47%) admitted their organisations are only “minimally data driven,” raising concerns about the effectiveness of AI implementation without a solid data foundation.
• The study also identified a group of “Strivers,” representing 45 percent of respondents, who are implementing AI more narrowly across around four functions and have efficiently used AI for cost-cutting.
• Over half of respondents are investing more in AI specifically due to advancements in generative AI. However, 70 percent voiced deep concerns about risks related to generative AI like potential brand damage and inaccurate data outcomes.

Expert Insights

“It’s clear that industry leaders recognise AI’s potential, but external pressures to implement quickly can lead to unchecked investment,” commented Kshitij Jain, EMEA Practice Head at EXL. “The risk is that ensuring operations are truly data driven gets deprioritised, which can prove very costly.”

Conclusion

The key with any AI rollout is a measured, strategic approach—getting the data architecture right, testing solutions, and training employees.

A full copy of the research can be found here (registration required)

See also: NCSC: AI to significantly boost cyber threats over next two years