Why the UK's financial sector is lagging in the AI race: A recent report reveals a growing skills gap is stalling digital transformation and costing businesses millions.
A survey of more than 14,000 white collar workers found that, of all the UK’s economic sectors, financial services is furthest ahead in the AI revolution. However, while it may be outpacing other sectors in adopting the technology, a new analysis of industry data reveals that its significant investment in AI has yet to pay off.
Recent research from AI upskilling platform Multiverse found that 67 per cent of financial organisations are using AI for process automation, yet only 37 per cent report transformative business results. The remaining 63 per cent are pouring money into AI technologies, without seeing a tangible ROI to match their level of investment.
This inefficiency is a major drain on productivity, with financial professionals spending an average of 2.7 hours per day on data tasks, according to additional Multiverse research. An estimated 32.5% of this time is spent ineffectively, leading to a loss of up to 25 days of productivity per year per employee that could be resolved through effective AI implementation. Those days, if recovered, could increase the sector’s economic output by as much as £28 billion.
Human capability is frequently cited as a blocker to realising the value of AI, but initial signs of overcoming this are not strong. Less than half (46 per cent) of financial services organisations are investing in AI upskilling, offering frequent and advanced training, and only 37 percent would rate their AI maturity ahead of competitors.
Financial institutions like Nationwide and Legal & General are leading the industry, investing in AI upskilling programmes through Multiverse. Their investment is already yielding results: Nationwide has seen learners save an average of one hour per week by applying their new skills. For instance, one apprentice developed a new workflow for data collection and management that saved 16 hours of work while also improving data accuracy.
Derrick Hastie, Chief Technology Officer, Asset Management at Legal & General has explained L&G’s philosophy on AI training this way: “AI isn't just a buzzword for us; it's a critical enabler of efficiency and growth. AI will soon be embedded in all our delivery teams, to help us create innovative solutions for our customers. But technology alone isn't enough. Education and skills are essential to ensure our people aren't just observers of change — they're active architects of it.”
By following these firms’ example and prioritising upskilling and empowering its workforce to effectively utilise AI tools, the UK financial services sector has a clear opportunity to solidify its position as the definitive leader in the AI era.
