AI Investment Surges as UK Financial Institutions Move from Pilots to Performance

Half of Financial Institutions to Boost AI Investment, Lloyds Survey Finds

Over half (51%) of financial institutions in the UK plan to increase their investment in artificial intelligence within the next year. Another 22% intend to maintain their current AI spending levels, according to the latest Financial Institutions Sentiment Survey (FISS) from Lloyds Banking Group.

This signals a clear shift as the UK financial sector moves into a more mature phase of AI adoption, with firms now reporting tangible benefits from their investments.

AI Driving Productivity and Client Insights

The survey, which gathered responses from more than 100 senior leaders across major banks, asset managers, insurers, and financial sponsors, reveals a notable rise in AI’s impact on productivity and customer understanding. Nearly 60% of respondents reported improvements in productivity due to AI, a significant jump from 32% last year.

Client experience is also benefiting, with 33% saying AI has enhanced interactions—more than double the 14% who felt this way in 2024. Additionally, 33% of senior leaders noted AI is helping them gain deeper customer insights, up from 18% the previous year.

From Pilot Projects to Real Performance

Lloyds highlights that AI is now moving beyond experimental stages into practical execution. Two-thirds of respondents believe AI will be a key driver of economic growth in the coming years.

Despite these positive trends, 70% of those surveyed urge the UK to accelerate its national AI strategy to stay competitive on the global stage. Correspondingly, 91% view AI more as an opportunity than a threat, reflecting growing confidence in the technology.

Competitive Advantage, Cost Savings, and Workforce Development

• 54% of senior leaders expect AI to provide a competitive edge.
• 53% anticipate cost savings through AI adoption.
• 50% believe AI will help develop a more technologically skilled workforce.

Nearly half of the institutions surveyed have established dedicated AI teams, and 20% have partnered with external AI providers to accelerate their AI initiatives.

Lloyds’ AI Implementation in Practice

Rohit Dhawan, director of AI and advanced analytics at Lloyds Banking Group, explains: “We’re seeing AI move firmly into the execution phase. Institutions are building on early investments and delivering tangible outcomes, such as productivity gains and sharper customer insights.”

At Lloyds alone, over 800 AI models are operational across more than 200 use cases, supporting both colleagues and customers. The group believes the UK has a real chance to lead in responsible AI adoption within financial services.

For finance professionals eager to deepen their AI knowledge and skills, exploring relevant training courses can provide practical advantages. Resources like Complete AI Training’s finance-focused AI courses offer targeted learning paths.