AI adoption in UK FS sector grows but understanding lags

Editorial

This content material has been chosen, created and edited by the Finextra editorial workforce based mostly upon its relevance and curiosity to our group.

The survey of 118 companies from throughout the FS sector exhibits that 75% are already utilizing AI, with an additional 10% planning to take action over the subsequent three years. That is up from 58% and 14% respectively in 2022.

A 3rd of all AI use instances are third-party implementations, up from 17% 2022. That is contributing to a lack of knowledge of the applied sciences being deployed: 46% report having solely ‘partial understanding’ versus 34% of companies that say they’ve ‘full understanding’.

Respondents report that 55% of all AI use instances have a point of automated decision-making with 24% of these being semi-autonomous, involving human oversight for important or ambiguous selections. Solely two per cent of use instances have absolutely autonomous decision-making.

Almost two thirds of all AI use instances are rated low ‘materiality’ by the companies that use them with 16% rated excessive materiality.

Respondents say the most important advantages of utilizing AI are in knowledge and analytical insights, anti-money laundering and combating fraud, and cybersecurity.

On the subject of dangers, knowledge privateness and safety, knowledge high quality, knowledge safety, and knowledge bias and representativeness price extremely. The dangers which can be anticipated to extend essentially the most over the subsequent three years are third-party dependencies, mannequin complexity, and embedded or ‘hidden’ fashions.

Lastly, the most important perceived regulatory constraint to using AI is knowledge safety and privateness adopted by resilience, cybersecurity and third-party guidelines and the FCA’s Shopper Responsibility.