AI adoption at UK banks lags behind US rivals
UK banks are playing catch up to their US and European counterparts on AI adoption, new research has revealed.
Evident Insight’s latest Responsible AI Report showed US banks led the way for AI specialists, with 20 positions alone at JPMorganChase – three times the average lender.
Co-founder and co-chief executive of Evident Insights Alexandra Mousavizadeh called for “stronger investment and a more cohesive AI strategy at a national level” to prevent UK banks from “lagging behind their US and European counterparts”.
Data showed only a third of the AI graduate talent coming from UK universities and going into banking actually works for UK firms.
She told City PM: “The UK’s AI Opportunities Action Plan is underfunded and does little to address structural issues like talent retention, capital investment, and innovation.
“This lack of support is a major disadvantage for UK banks, which are already struggling to compete globally,” she added.
UK banks accelerate on ethical AI
Responsible AI (RAI) hiring grew 41 per cent year-on-year, with 41 out of 50 major banks now employing RAI specialists, up from 31 in 2023.
These included UK lenders Lloyds, Natwest and Standard Chartered, who each have a designated “Head of Responsible AI” to oversee ethical implementation.
UK banks grew RAI roles 2.5 times faster than the index average, which the report said reflected their need for leaders “that can manage and direct growing headcount.”
UK and European lenders also led the way for AI ethics talent, with 70 per cent of all specialists.
Mousavizadeh said: “The US banks have traditionally been more explicit in setting up responsible AI roles and teams.
“What we’re seeing now is UK banks moving fast to catch up,” she said.
Mousavizadeh dismissed employment fears over advancing technology and said a lack of investment in AI is what puts jobs at risk.
“What we’re seeing in the data is that banks actively investing in AI are also hiring more across the board.
“So, if anything, AI-driven banks are growing, not shrinking,” she said.
The report follows several of the UK’s biggest lenders beginning to implement AI business-wide.
Natwest launched its AI & Data Ethics Code of Conduct last year, which the bank referred to as its “north star” for using AI and data responsibly.
Lloyds had also established its own AI Centre for Excellence with ex-Amazon technology leader Rohit Dhawan at the helm.