Lloyds’ Financial Institutions Sentiment Survey finds that UK financial firms are doubling down on AI as producivity surges.
According to the annual survey, the sector is entering a new phase of AI maturity, with firms reporting tangible business benefits and increased investment in the technology over the last 12 months.
The study, which captures insights from over 100 senior leaders across the UK’s largest banks, asset and wealth managers and insurers, reveals a sharp rise in AI adoption and impact, with 59% of institutions reporting improved productivity from AI.
The technology is also seen to be driving improvements in client experience, customer insights and business growth.
With confidence rising, investment is increasing. Over half (51%) of institutions plan to increase AI investment over the next 12 months, with a further 22% maintaining current levels of spend.
To support this, nearly half (48%) of institutions have set up dedicated AI teams, while 20% have partnered with external AI providers to accelerate adoption.
Lisa Francis, head of institutional coverage at Lloyds Bank Corporate & Institutional Banking, says: “UK financial institutions are not only investing in AI, they’re building it into the fabric of their businesses and seeing measurable gains. The productivity uplift alone is a compelling sign that these technologies are already reshaping the industry. We remain focused on supporting financial institutions to embed the technology in a way that drives measurable outcomes.”
Earlier this year, Lloyds revealed that it was building a new machine learning and GenAI platform using Google Cloud’s Vertex AI. The bank says it expects the technology to bring in at least £50 million in revenue growth and productivity improvements in 2025.
Rohit Dhawan, director of AI and advanced analytics at Lloyds Banking Group, says the bank now have over 800 models in operation, representing more than 200 AI use cases.
“We’re seeing AI move firmly into the execution phase," he says. "Institutions are building on early investments and delivering tangible outcomes, such as productivity gains and sharper customer insights. We believe that, with the right focus, the UK has an opportunity to lead in responsible AI adoption across financial services.”