New findings from BoE and FCA survey on AI adoption in UK financial services
On 21 November 2024, the Bank of England (BoE) and the Financial Conduct Authority (FCA) published their 2024 survey on AI adoption in the UK financial services sector.
The key takeaway from the survey is that 75% of firms were found to be currently using AI, with another 10% having plans to do so within the next three years. This represents a sharp increase from the previous 2022 survey (up from 58% and 14% respectively).
Further AI adoption trends
The survey also found that foundation models now account for 17% of AI use cases, illustrating their growing importance in standardising and scaling applications across the sector. Automated decision-making (ADM) features prominently in AI deployments, with 55% of use cases incorporating ADM. However, fully autonomous decision-making remains rare, at just 2%, indicating the sector's cautious approach and preference for maintaining human oversight in critical processes.
Risk landscape
Data-related risks dominate the current landscape, with concerns about data privacy, quality, security, and bias featuring among the top five risks. This reflects the sector’s heavy reliance on accurate and secure data to power AI systems. Emerging risks, such as dependence on third-party AI models and increased complexity in AI applications, are expected to grow, raising questions about transparency and control. Cybersecurity continues to be the highest perceived systemic risk, and its importance will persist over the next three years. However, critical third-party dependencies are expected to pose the largest increase in systemic risk, underscoring the need for stronger oversight of external AI providers.
Governance and accountability
The survey also found that a significant challenge exists in firms’ understanding of the AI technologies they use, with 46% of respondents reporting only a partial grasp of these systems. The survey suggests that this is particularly acute for firms relying on third-party solutions, where visibility into the AI supply chain is often limited. Despite this, 84% of firms reported having an accountable person for their AI frameworks, and over half have implemented nine or more governance components specific to AI use cases. Accountability is often shared among multiple stakeholders, with 72% of firms assigning responsibility to executive leadership. However, fragmented governance structures, involving three or more accountable persons or bodies in many firms, could dilute oversight and effectiveness.
Regulatory constraints, particularly around data protection, resilience, and cybersecurity, are perceived as significant barriers to AI adoption. Non-regulatory challenges, such as ensuring the safety and robustness of AI models and addressing talent shortages, further complicate firms' ability to scale AI responsibly.
Balancing benefits and risks
Despite these challenges, firms remain optimistic about the potential of AI. The perceived benefits of AI, such as enhanced efficiency, innovation, and personalised customer experiences, are expected to grow by 21% over the next three years, compared to a 9% increase in perceived risks. This positive outlook reflects the sector's confidence in its ability to address the complexities of AI while leveraging its transformative potential.
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Kir Nuthi
Kir Nuthi
Kir Nuthi is the Head of AI and Data at techUK.
She holds over seven years of Government Affairs and Tech Policy experience in the US and UK. Kir previously headed up the regulatory portfolio at a UK advocacy group for tech startups and held various public affairs in US tech policy. All involved policy research and campaigns on competition, artificial intelligence, access to data, and pro-innovation regulation.
Kir has an MSc in International Public Policy from University College London and a BA in both Political Science (International Relations) and Economics from the University of California San Diego.
Outside of techUK, you are likely to find her attempting studies at art galleries, attempting an elusive headstand at yoga, mending and binding books, or chasing her dog Maya around South London's many parks.
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Usman Ikhlaq
Usman Ikhlaq
Usman joined techUK in January 2024 as Programme Manager for Artificial Intelligence.
He leads techUK’s AI Adoption programme, supporting members of all sizes and sectors in adopting AI at scale. His work involves identifying barriers to adoption, exploring solutions, and helping to unlock AI’s transformative potential, particularly its benefits for people, the economy, society, and the planet. He is also committed to advancing the UK’s AI sector and ensuring the UK remains a global leader in AI by working closely with techUK members, the UK Government, regulators, and devolved and local authorities.
Since joining techUK, Usman has delivered a regular drumbeat of activity to engage members and advance techUK's AI programme. This has included two campaign weeks, the creation of the AI Adoption Hub (now the AI Hub), the AI Leader's Event Series, the Putting AI into Action webinar series and the Industrial AI sprint campaign.
Before joining techUK, Usman worked as a policy, regulatory and government/public affairs professional in the advertising sector. He has also worked in sales, marketing, and FinTech.
Usman holds an MSc from the London School of Economics and Political Science (LSE), a GDL and LLB from BPP Law School, and a BA from Queen Mary University of London.
When he isn’t working, Usman enjoys spending time with his family and friends. He also has a keen interest in running, reading and travelling.
Sue Daley OBE
Sue Daley OBE
Sue leads techUK's Technology and Innovation work.
This includes work programmes on cloud, data protection, data analytics, AI, digital ethics, Digital Identity and Internet of Things as well as emerging and transformative technologies and innovation policy.
In 2025, Sue was honoured with an Order of the British Empire (OBE) for services to the Technology Industry in the New Year Honours List.
She has been recognised as one of the most influential people in UK tech by Computer Weekly's UKtech50 Longlist and in 2021 was inducted into the Computer Weekly Most Influential Women in UK Tech Hall of Fame.
A key influencer in driving forward the data agenda in the UK, Sue was co-chair of the UK government's National Data Strategy Forum until July 2024. As well as being recognised in the UK's Big Data 100 and the Global Top 100 Data Visionaries for 2020 Sue has also been shortlisted for the Milton Keynes Women Leaders Awards and was a judge for the Loebner Prize in AI. In addition to being a regular industry speaker on issues including AI ethics, data protection and cyber security, Sue was recently a judge for the UK Tech 50 and is a regular judge of the annual UK Cloud Awards.
Prior to joining techUK in January 2015 Sue was responsible for Symantec's Government Relations in the UK and Ireland. She has spoken at events including the UK-China Internet Forum in Beijing, UN IGF and European RSA on issues ranging from data usage and privacy, cloud computing and online child safety. Before joining Symantec, Sue was senior policy advisor at the Confederation of British Industry (CBI). Sue has an BA degree on History and American Studies from Leeds University and a Masters Degree on International Relations and Diplomacy from the University of Birmingham. Sue is a keen sportswoman and in 2016 achieved a lifelong ambition to swim the English Channel.
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Usman Ikhlaq
Usman joined techUK in January 2024 as Programme Manager for Artificial Intelligence.
