Widespread concerns hinder AI’s progress in UK’s Financial Services, Banking and Insurance sector

London, October 16th, 2024 - Progress in widely adopting AI in the UK’s Financial Services, Banking and Insurance sector is only happening gradually as a global study[1] finds today that concerns over data privacy, high costs, and uncertain ROI is hindering broader AI implementations. Currently only 1 in 5 organisations (21%) in the sector are actively adopting AI technologies, while 48% are in the process of implementation.

At the same time, executives in the sector identified the most significant challenges as managing organisational culture and resistance to AI, ensuring data security & compliance, addressing skill gaps and AI-specific training needs.

The BearingPoint study of over 700 C-Suite level executives globally, including 98 executives from Financial Services, Banking and Insurance organisations with over €500 million in revenues, also found that whilst the UK industry recognises the potential of AI, there is a tempered outlook regarding its transformative impact. Only 4% of executives in the UK’s Financial Services, Banking and Insurance sector[2] believe that Generative AI will have a transformational impact over the next 5-10 years, and 60%—the highest proportion compared to other industries in the UK—view AI as having only a moderate impact.

The study also found that while three quarters (76%) of executives in the UK are either AI Enthusiasts or Experimenters, almost a quarter (24%) remain AI Skeptics or AI Cautious, reflecting a diverse range of perspectives on AI adoption.

AI's potential in the UK’s Financial Services, Banking, and Insurance sector is undeniable, but significant barriers remain. To move from exploration to meaningful impact, organisations need to prioritise not only technological investment but also cultural change and skills development. The journey to AI maturity will require both vision and commitment, with a focus on building trust and ensuring robust data security to fully harness AI’s capabilities.

Tony Farnfield, Partner and Practice Lead, BearingPoint

When it comes to measuring the success of AI, the UK’s Financial Services, Banking and Insurance sector focuses on outcomes such as enhanced efficiencies, reduced operational costs, increased revenue, and new market penetration. Despite these focused priorities, only 32% of executives report having a well-documented strategy for AI adoption, despite 44% conducting regular training for their employees on AI. This gap indicates that while there is recognition of AI's potential, strategic clarity and planning are still evolving.

Tony Farnfield concluded:

AI adoption in the UK’s Financial Services, Banking, and Insurance sector is about more than just technology—it’s about reshaping how businesses operate. While many are testing the waters, true transformation will come when AI is embedded in the core strategy and mindset of organisations. The potential for AI to revolutionise customer experiences and drive competitive advantage is clear, but it will require bold steps and sustained effort to realise that promise fully.

Tony Farnfield, Partner and Practice Lead, BearingPoint

Download the study for more details about AI and transitioning to augmented organisations: https://www.bearingpoint.com/en-gb/insights-events/insights/are-uk-companies-ready-for-ai-driven-transformation/

[1] BearingPoint surveyed over 700 C-Suite executives in Europe, USA, and Asia on the Best Practices of AI adoption during June 2024.

[2] BearingPoint surveyed 25 C-Suite executives from the UK’s Financial Services, Banking and Insurance industry.

-ENDS-

Report Methodology

The data for this research was collected through an online survey conducted in June 2024. The survey targeted 700 C-suite executives from various sectors, both private and public. The respondents held various C-level roles within their organizations, including but not limited to CEO, COO, CDO, CIO, CMO, CRO, and CLO. BearingPoint’s research focused on large organisations with over €500 million in revenues. The geographical scope of the survey covered key markets in Europe, the US, and Asia.

About BearingPoint

BearingPoint is an independent management and technology consultancy with European roots and a global reach. The company operates in three business units: Consulting, Products, and Capital. Consulting covers the advisory business with a clear focus on selected business areas. Products provides IP-driven digital assets and managed services for business-critical processes. Capital delivers M&A and transaction services.

BearingPoint’s clients include many of the world’s leading companies and organizations. The firm has a global consulting network with more than 10,000 people and supports clients in over 70 countries, engaging with them to achieve measurable and sustainable success.

BearingPoint is a certified B Corporation, meeting high standards of social and environmental impact.

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