The UK’s financial institutions are doubling down on AI as productivity surges
Artificial intelligence (AI) has moved from pilot to performance for UK financial institutions. According to the latest Lloyds’ Financial Institutions Sentiment Survey (FISS), the sector is entering a new phase of AI maturity, with firms reporting tangible business benefits and increased investment in the technology over the last 12 months.
The annual survey, which captures insights from over 100 senior leaders across the UK’s largest banks, asset and wealth managers, insurers, and financial sponsors, reveals a sharp rise in AI adoption and impact:
- 59% of institutions now report improved productivity from AI (vs 32% in 2024).
- 33% are enhancing client experience (vs 14% in 2024).
- 33% are gaining deeper customer insights (vs 18% in 2024).
- 21% say AI is directly driving business growth (vs 8% in 2024).
This momentum is fuelling a shift in sentiment, with 91% of institutions now viewing AI as more of an opportunity than a threat, up from 80% in 2024. With confidence rising, investment is increasing. Over half (51%) of institutions plan to increase AI investment over the next 12 months, with a further 22% maintaining current levels of spend.
Looking ahead, institutions see AI as a strategic lever:
- 54% expect it to deliver a competitive advantage;
- 53% anticipate cost savings;
- 52% believe it will drive business growth;
- 50% say it will help build a more technologically skilled workforce.
To support this, nearly half (48%) of institutions have set up dedicated AI teams, while 20% have partnered with external AI providers to accelerate adoption.
Beyond this, there is growing optimism about AI’s potential to benefit the broader economy, with 63% of institutions believing that advancements in AI will support UK economic growth. However, many feel that further momentum is needed, with 70% saying the UK should accelerate its national AI strategy to keep pace globally.
“This year’s FISS findings show that UK financial institutions are not only investing in AI, they’re building it into the fabric of their businesses and seeing measurable gains,” said Lisa Francis (Head of Institutional Coverage at Lloyds Bank Corporate & Institutional Banking).
“The productivity uplift alone is a compelling sign that these technologies are already reshaping the industry. We remain focused on supporting financial institutions to embed the technology in a way that drives measurable outcomes,” she said.
