A UK Finance study of 23 international to mid-size banks and non-banking financial services firms has found that 70 per cent are trialling generative AI (GenAI).

The survey found that a further 91 per cent of companies are already using predictive AI for several tasks including fraud detection and risk analysis.

The study by UK Finance and consultancy Oliver Wyman also revealed that most financial services firms believe that it will take around three to five years before GenAI can be used for more advanced tasks such as customer service.

Around three-quarters of respondents said they believe they will benefit from GenAI and expect improvements in operational effectiveness and productivity.

The report cited the case of one firm which deployed its own GenAI assistant which was used by 15,000 staff within 30 days of launch. Among the staff that used it, 94 per cent said it improved their productivity and efficiency in tasks such as writing, searching for answers to specific questions and summarising documents.

Financial firms are also aware of the risks that come with using AI as around 80 per cent of firms told UK Finance that they want to collaborate with regulators to define best practice. Firms also want international alignment of regulations, with 65 per cent of those surveyed saying conflicting rules between jurisdictions is one of their top-three concerns about AI policy.

“Generative AI is a new horizon for financial services, with clear opportunities for firms, from boosting productivity and growth, to improving the experience for customers,” said Jana Mackintosh, managing director of payments, innovation and resilience at UK Finance. “And as this report shows, a majority are already piloting the technology to find the best way to safely explore these exciting opportunities.”

She added: “At the same time, however, FS firms are clear-eyed about the risks. The sector has been using predictive AI for years, and firms have enhanced their risk management processes to make sure the technology only ever adds to their accuracy, security and offering for customers. And the majority are already upgrading these processes to lock down the risks from generative AI.”

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