We are in the very early stages of a major technological change as artificial intelligence (AI) begins to transform industries, bringing new opportunities and risks. In this report, written in collaboration with UK Finance and its members, we consider the state of AI adoption, emerging applications, and risks in financial services.

AI, particularly generative AI, is transforming industries with its recent breakthroughs, offering exciting possibilities alongside challenges that demand attention. Oliver Wyman is working with a range of clients on this topic. This resurgence in AI discussions is now a top priority for executives — and the impacts on the industry will be profound. These include innovative propositions, enhanced user experiences, and increased automation to reduce costs and bridge skills gaps.

In this report with UK Finance, we examine the current and future state of AI in the UK financial services sector. Drawing on insights from in-depth interviews and a survey of UK Finance members, more than 90% of which have deployed AI, we highlight the immense opportunities and the steps the industry has already taken. We also identify key discussion areas for safe AI adoption.

The UK is a leader in financial services and renowned for its adoption of technology, while managing to balance safety and innovation in its regulatory ecosystem. The recent AI Safety Summit underlines this leadership. This report aims to set the immediate agenda for financial institutions and regulators to further refine AI regulations during this critical period in technology regulation.

As advisors to the industry, we understand the effort required to adopt new technologies and create value for all stakeholders. With 60% of respondents anticipating significant cost savings from AI, the path to impactful return on investment is long but promising.

Join us on this journey as we explore the transformative potential of AI in financial services. Together, we can navigate the path towards responsible and impactful AI adoption.