UK banks invest big in AI but struggle to see business returns

New research has found that while the UK's financial services sector is at the forefront of adopting artificial intelligence (AI) technologies, it is struggling to realise the business benefits from its investments.

According to a survey conducted by Multiverse, which included more than 14,000 white collar workers, financial services organisations are more advanced in AI adoption than any other sector across the UK economy. However, the data shows that significant investment in AI is not being matched by a comparable return, with most firms yet to see meaningful improvement in business outcomes.

AI adoption versus impact

The Multiverse research revealed that 67 per cent of financial organisations are deploying AI for process automation. Despite this, only 37 per cent reported that their implementation had led to transformative results, while a substantial 63 per cent are yet to see tangible returns on their investments.

This gap between adoption and effective utilisation suggests that, while the sector is spending on new technologies, many firms are not maximising AI's potential in their operations.

A separate analysis by Zopa projects that banks alone in the UK will invest GBP £1.8 billion in generative AI by the end of the decade. The inability to achieve measurable results from this outlay highlights the sector's challenge in converting AI adoption into productivity gains or commercial advantage.

Productivity losses

The productivity impact of inefficient AI implementation is considerable. According to Multiverse's research, financial professionals spend an average of 2.7 hours each day handling data processes. Of this time, more than 32 per cent is estimated to be spent ineffectively, equating to as much as 25 days of lost productivity per employee each year.

Multiverse calculates that if this lost productivity could be recovered through more effective use of AI, the economic output of the financial services sector could increase by up to GBP £28 billion.

Skills gap and training

The Multiverse report points to a skills gap as a significant factor holding back progress in AI implementation. Human capability continues to be a commonly cited obstacle in unlocking the benefits of AI within the sector. Less than half (46 per cent) of organisations surveyed offer frequent and advanced AI upskilling opportunities to employees, and only 37 per cent believe their AI maturity is ahead of their competitors.

Institutions such as Nationwide and Legal & General are identified as exceptions, having invested in AI upskilling programmes via Multiverse. These initiatives are beginning to show results. Nationwide, for example, has reported that learners are saving an average of one hour per week through improved skills. A single apprentice at the institution was able to create a new data collection and management workflow, resulting in a 16-hour reduction in workload and enhanced data accuracy.

"AI isn't just a buzzword for us; it's a critical enabler of efficiency and growth. AI will soon be embedded in all our delivery teams, to help us create innovative solutions for our customers. But technology alone isn't enough. Education and skills are essential to ensure our people aren't just observers of change - they're active architects of it."

This statement was provided by Derrick Hastie, Chief Technology Officer, Asset Management at Legal & General, highlighting the company's approach to workforce training in AI.

Sector outlook

The research indicates that an ongoing lack of effective training and upskilling could exacerbate competitive differences across the sector, as companies investing in practical AI education are already seeing measurable benefits. The report suggests that by prioritising upskilling, financial services can improve the tangible impact of their AI investments and reinforce the UK's position in technology transformation within global financial markets.