AI tops tech growth priorities for UK finance firms

A Lloyds Bank survey of more than 100 senior decision-makers at UK banks, insurers, private equity firms and asset and wealth managers found 77% now view emerging technology as a top growth priority. Ninety-one percent said they will increase technology spending and 64% plan to raise overall expenditure.

Within emerging technology, 93% of respondents ranked artificial intelligence as the most impactful over the next five years.

The findings come from Lloyds Bank’s tenth annual Financial Institutions Sentiment Survey and mark a rise from last year, when 41% of firms identified emerging tech as a growth priority.

Respondents showed greater optimism for the sector. Ninety-four percent expect their business to grow over the next decade, up from 81% in last year’s survey, and 71% said the UK will retain a strong position in global financial services, compared with 60% a year earlier.

Lloyds’ report says firms are moving from testing new tools to deploying them at scale. The report highlights AI, data, talent and international expansion as priority areas being funded to improve productivity and client service.

Rohit Dhawan, group executive director of AI at Lloyds, said: “AI has crossed a threshold. The question is no longer whether it works, but how quickly we can embed it at scale.” He described investing in technology, people and governance in parallel as necessary for responsible deployment.

Lloyds has begun applying that approach internally. In January the bank announced an AI Academy to train all 67,000 employees. The programme offers interactive modules, short courses, articles, podcasts and community learning, and starts with a compulsory module on responsible, safe and ethical AI use.

Ron van Kemenade, group chief operating officer, said the bank aims to move real use cases into production to simplify processes and deliver more personalised services. He said investing in staff skills will help scale new applications while maintaining controls.

Lisa Francis, global head of corporate and institutional banking coverage, commented that institutions are prioritising AI, data, talent and international expansion. She said advanced AI and data solutions are moving from ambition to adoption, with firms focusing on productivity, client relationships and market opportunities.

The survey frames the shift as a reallocation of resources to technology and skills. Lloyds’ report recommends combining training, governance and targeted investment to convert technical capability into measurable benefits for customers and for the UK economy.