The UK Treasury has tasked the Financial Services Skills Commission (FSSC) with developing a report focused on the skills requirements, training, and innovations related to artificial intelligence (AI) in the financial services sector.
With the demand for AI expertise surging and its integration into the industry accelerating, the UK Government is proactively assessing how these technologies will influence business practices, workforce dynamics, and skillsets over the next five to ten years.
This forthcoming report aims to outline the essential components needed for the effective adoption, implementation, and utilization of AI, along with a detailed strategy for cultivating the skills necessary for the sector to maintain its global competitiveness. The FSSC is collaborating with key stakeholders, including the City of London Corporation, TheCityUK, Lloyds Banking Group, and PwC, to create a comprehensive framework.
The Government has set a deadline of mid-2027 for the report’s completion; however, this timeline may seem insufficient given the significant impact AI is already having on daily financial decision-making. Recent research from Lloyds indicates that over half of UK adults have utilized AI tools for managing their finances over the past year, making personal finance the most prevalent application of AI in the country.
Jas Singh, CEO of Consumer Relationships at Lloyds Banking Group, commented on the research findings, stating, “As AI becomes an integral part of our financial lives, building trust is the next frontier. People want assurances that the information they receive is accurate, secure, and personalized. Hence, banks play a crucial role not only by offering advanced technology, but also by combining it with trusted expertise and a deep understanding of their customers’ needs.”
The report will evaluate various critical components, including:
– The potential impact of AI on growth and productivity within the financial services sector at both national and regional levels.
– The skills required for effective integration and use of these technologies within the industry.
– A strategic plan to develop these necessary skills, incorporating actionable steps for employers, employees, educators, and government agencies, while considering the broader economic context, including outcomes from the Spending Review.
– A cost-benefit analysis of proposed measures where applicable.
The Financial Services Growth and Competitiveness Strategy aims for delivery of this report to HM Treasury by mid-2027, noting that an earlier completion is possible should progress allow. The FSSC is encouraged to maintain communication with Skills England and engage with their officials throughout this initiative, with gratitude extended to the partners contributing to this vital work. The completion of this report will be a significant step toward preparing the sector for the considerable challenges ahead.