AI talent arms race lifts UK finance vacancies 12% as tech roles overtake banking

UK finance vacancies rose 12% in 2025, driven by demand for AI, data, and regulatory skills. Tech roles now lead as manual jobs shrink, and Q1 hiring looks steady despite soft Q4.

Categorized in: AI News Finance
Published on: Jan 13, 2026
AI talent arms race lifts UK finance vacancies 12% as tech roles overtake banking

UK Finance Hiring Shifts: AI and Tech Roles Drive a 12% Rise in 2025 Vacancies

Vacancies in UK financial services rose 12% in 2025, led by demand for AI, regulatory, and data reporting talent, according to Morgan McKinley. Even with a softer fourth quarter-thanks to market swings and uncertainty around the November budget-the push for specialist skills didn't slow much.

Key takeaway: Firms are in a tech arms race. If your team can ship data, automate reporting, and manage AI risk, you're ahead.

Where the Jobs Are

Software and computer services roles now make up 16%+ of vacancies, surpassing investment management and banking, each at 15%. The signal is clear: value is shifting to platforms, data, and automation layers across the front, middle, and back office.

Roles tied to manual processes are shrinking. Clerical and administrative positions fell 16%, and broking dropped 20%, as AI and automation reduce headcount needs in transactional work.

What This Means for Firms

  • Prioritize headcount in data engineering, model risk, regulatory technology, and AI governance. These areas enable scale and reduce operational drag.
  • Rebuild operating models around fewer manual touchpoints. Target straight-through processing and automated reporting first.
  • Upskill incumbents who know the products and regs; then layer technical capability. The blend beats pure-play tech or pure-play finance alone.
  • Expect higher compensation for experienced platform, data, and risk talent. Budget accordingly or move faster on offers.

What This Means for Finance Professionals

  • Double down on skills that ship: SQL, Python, data modeling, workflow automation, and cloud basics. Add model risk and AI policy for extra leverage.
  • Stay close to regulation and reporting. PRA, FCA, Basel, and ESG data reporting fluency increases your market value.
  • Show outcomes, not theory: dashboards that cut reporting time, reconciliations automated end-to-end, or controls improved with fewer exceptions.
  • Look at cross-functional roles spanning product, risk, data, and compliance. That's where budgets and decision-making are heading.

Near-Term Outlook

Hiring is set to stay active into Q1, supported by 5% unemployment and 3.2% inflation. Keep an eye on macro volatility and fiscal signals, but expect continued demand where tech meets regulation and risk.

Practical move: secure critical engineers and data hires early, consider short-cycle contractors to de-risk delivery, and track automation ROI the same way you track P&L initiatives.

Action Checklist

  • For employers: audit workflows for manual bottlenecks; refresh job descriptions with clear data/automation outcomes; create an internal training track for AI, data, and controls; build a bench of pre-vetted contractors.
  • For candidates: ship a small portfolio-automation scripts, reporting pipelines, or control dashboards with real metrics; tune your CV with domain + data keywords; line up one certification or intensive course to close a gap fast.

If you're upgrading skills for finance-focused AI and automation, explore curated options here: AI tools for finance.

For context on the macro backdrop, see official data on UK employment and the Bank of England's view on inflation.


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