Regulators, policymakers and industry leaders have spent the past several years examining questions of governance, accountability, operational resilience and consumer protection when it comes to AI. That focus remains essential.  

But there is no longer a question of whether or not to adopt AI. That genie is well and truly out of the bottle. More than three quarters of financial services firms already use¹ the technology.    

The bigger competitive risk 

In conversations I've been having with senior leaders across our industry, a different concern is coming to the fore. Firms are beginning to think far more seriously about the risks of not adopting AI – or rather, not adopting it properly, quickly enough.  

Competitors are experimenting. New entrants are building AI into their operating models from day one. Customer expectations are evolving. Employees increasingly expect to work with modern tools that help them be more productive and effective. At the same time, the technology itself continues to advance at remarkable speed.  

This has moved the debate on from whether AI is safe enough to deploy in an organisation. The discussion is now where AI can create value, how opportunities should be prioritised, and how organisations can adopt it responsibly without becoming paralysed by caution. 

From the IT department to the Boardroom  

One of the most consistent observations from our discussions with members is how quickly AI has moved beyond the technology function, and into the C-suite.  Technology, data and innovation teams remain critical to successful adoption on a practical level. But the questions around AI have become strategic rather than tactical.  

Where should investment be directed? Which use cases deserve executive sponsorship? How should firms balance innovation with control? What governance structures are required? How do organisations bring their people with them through change? Are there regulatory considerations?  

Strategy, risk, culture, operating models and organisational priorities all come to the fore in its successful adoption – all of which requires skilled and knowledgeable leadership.  

The risk of getting stuck in experimentation 

Although AI is increasingly common, it is not necessarily embedded uniformly throughout the industry. Many organisations remain at the experimentation phase. As the technology has developed, most have explored tools, run pilots, tested use cases and established initial governance frameworks.  

What can be less clear is how to move from experimentation to transformation. Leaders must grapple with which opportunities to prioritise, how to measure value, how to ensure the right data architecture, how to ensure consistency in adoption – fundamentally, how to create the right operating conditions for effective AI use to scale.  

The financial services industry cannot afford to pursue AI recklessly. Equally, it cannot afford to ignore the pace of change. The organisations that will benefit the most from this technological revolution are likely to be those that can balance both. This requires capable, confident, and informed leadership.  

Building finance leadership capability in the AI era 

AI presents a capability challenge as much as a technology challenge. And while greater education for employees is critical, this has to start at the top. 

That’s why we have developed our AI Leadership Academy - a six-part online workshop series for senior leaders in financial services.  It is designed to help leaders move beyond AI awareness and develop the judgement, confidence and organisational perspective needed to lead in an AI-enabled world. 

Get in touch with our Training Team if you want to find out more training@ukfinance.org.uk.