According to a recent Financial Institutions Sentiment Survey conducted by Lloyds Bank, there has been a dramatic increase in AI adoption across the UK banking sector. The report highlights a significant shift in attitudes, with 63% of financial firms now investing in AI, compared to just 32% in 2024.
Additionally, over 81% of respondents view AI as a major business opportunity, reflecting a sharp increase from the 56% recorded in the previous year. Banks and financial institutions are seeing direct benefits from their AI investments. The report outlines that 32% of these organizations have experienced enhanced productivity, 22% have gained a competitive advantage, and 18% are benefiting from AI-driven insights.
Lisa Francis, Head of Institutional Coverage at Lloyds Bank Corporate & Institutional Banking, commented on the findings, stating: “The focus has shifted from merely exploring AI to making practical investments and applications. As a result, many institutions are already experiencing benefits like improved productivity, deeper customer insights, and a competitive edge.”
While these benefits are evident, many expect further advancements as the use of AI continues to grow across various areas of financial services. The survey, which included insights from 100 senior decision-makers across banks, wealth managers, insurers, and financial sponsors, reveals an optimistic outlook on the future role of AI.