Recent research indicates a notable transformation in the attitudes of UK banks toward artificial intelligence (AI), highlighting increased adoption and a growing acknowledgment of its advantages.
The Financial Institutions Sentiment Survey conducted by Lloyds shows that the utilization of AI has surged, with 63% of firms now investing in this technology, a significant rise from 32% in 2024. Furthermore, an impressive 81% of respondents now perceive AI as a viable business opportunity, a marked increase from just 56% the previous year.
The survey also reveals that UK banks are already witnessing substantial benefits from their AI initiatives. Specifically, 32% of institutions report enhancements in productivity, 22% are gaining a competitive advantage, and 18% are reaping the rewards of AI-driven insights, with 69% anticipating even greater benefits in the future.
Lisa Francis, head of institutional coverage at Lloyds Bank Corporate & Institutional Banking, commented, “The emphasis has transitioned from merely exploring AI to committing to practical investments and real-world applications. Consequently, many institutions are currently benefiting from increased productivity, enriched customer insights, and a reinforced competitive position. While the overall impact across all business sectors is still unfolding, this evolution will continue as institutions innovate and adapt.”
The survey gathered insights from 100 senior decision-makers from banks, wealth management firms, insurers, and financial sponsors.
For those interested in the evolving landscape of artificial intelligence in banking, further insights and discussions will be featured at Finextra’s inaugural NextGenAI conference on November 26, 2024. Register your interest to learn more about the challenges and opportunities AI presents in this sector.