UK financial services firms cautious but keen to adopt GenAI, new survey says
Financial services firms in the UK are actively pursuing the operational benefits of generative AI (GenAI), but many express concern around divergent legal standards and risk management, according to a new industry study by trade association UK Finance and management consulting firm Oliver Wyman.
UK Finance members pilot GenAI use cases
The study surveyed 23 members of the UK Finance trade association, including international to mid-size banks and non-banking financial services firms.
Published this week, the results indicate that the surge in active GenAI testing, with 70% currently piloting use cases, is largely focussed on the use of co-pilot style employee efficiency tools.
The top-rated consequences of adoption were increases in productivity (74%), operational effectiveness (70%) and customer experience (61%) across automation, customer service and sales functions.
The survey also showed how the level of GenAI adoption was marginally lower than the current uptake in predictive AI, which was observed among 91% of firms and is seeing its most popular application in fraud detection and risk analytics.
Despite these factors, current models aren’t expected to draw a return on investment for at least the next three years, the survey says, especially given the lack of regulatory safeguards behind them.
Three out of five survey respondents report they are currently adapting their existing management procedures to cover the risks associated with the technology, while regulators in Europe put the finishing touches to the EU AI Act, which is expected next year.
In the spirit of caution and pursuit of best practice, 80% of firms expressed a desire to collaborate with regulators, with jurisdictional incongruity being cited as one of the top three concerns around AI regulation by 65% of firms.
Reflecting on the findings, Jana Mackintosh, managing director of payments, innovation and resilience at UK Finance, says that despite the “clear opportunities” presented by the technology, firms remain “clear-eyed about the risks”.
“What firms want now is to collaborate with policy makers and regulators on a long-term, flexible approach to regulation that can keep pace with technological change, ensuring our FS sector can guard against any risks from this technology, while safely seizing its great competitive advantages.”
Sian Townson, partner at Oliver Wyman, urges adoption to be “balanced with nascent regulation, both within the UK and internationally”, and that the technology “has the power to turbocharge opportunities, if used correctly”.
