The Bank of England and the Financial Conduct Authority (FCA) have announced the results of their 2024 Artificial Intelligence and Machine Learning Survey, revealing that 75% of financial services firms in the UK are currently using AI.
This marks a notable increase from 58% reported in a similar survey two years ago. Among the sectors, the insurance industry leads with a 95% adoption rate, followed closely by international banks at 94%.
Despite this growth, 56% of firms using AI reported having ten or fewer use cases, with only 10% exceeding fifty. Looking ahead, 31% anticipate maintaining a limited number of use cases, while nearly a quarter expect to expand significantly.
Automated decision-making is prevalent, with 55% of use cases involving some level of automation, although only 2% are fully autonomous. Firms expect AI to enhance data insights, combat fraud, and improve operational efficiency.
However, significant risks remain, particularly concerning data privacy, quality, and security. The survey also highlighted that 46% of firms have only a partial understanding of the AI technologies they deploy.
The FCA has launched an AI Lab to assist firms in navigating the complexities of AI implementation, aiming to foster a deeper understanding of both the opportunities and risks associated with AI in financial services.