Financial services introducing AI but hindered by data issues - Applications - NewsFinancial services introducing AI but hindered by data issues - Applications - News

UK Financial Services Firms Adopt ai, but Data Optimization Challenges Loom


A recent study by researchers has revealed that approximately 89% of insurance and banking firms in the UK have implemented artificial intelligence (ai) solutions over the past year. Among them, 44% have deployed ai across eight or more business functions such as marketing, business development, and regulatory compliance.

Nearly 9 in 10 financial services leaders reported investing more than £7.9 million ($10.6 million) in ai during their last fiscal year, with over a third of them putting in £39 million or more.

Data Optimization Challenges

Despite the positive progress made in ai integration, a study showed that organizations might be overlooking the importance of prioritizing their data operations. Around 47% of respondents admitted their organizations are only “minimally data driven,” raising concerns about the effectiveness of ai implementation without a solid data foundation.

Strivers and Measures

The research also identified a group of “Strivers,” representing 45% of respondents, who are implementing ai more narrowly across around four functions. Their focused approach has allowed them to efficiently leverage ai for cost-cutting and outperform early ai adopters by 23 percentage points.

Generative ai Risks

Over half of the respondents are investing more in ai specifically due to advancements in generative ai. However, 70% voiced deep concerns about risks related to generative ai like potential brand damage and inaccurate data outcomes.

Strategic Approach Needed

“The key with any ai rollout is a measured, strategic approach—getting the data architecture right, testing solutions, and training employees,” said Kshitij Jain, EMEA Practice Head at EXL.

Boards Must Buy Into ai Capabilities

For enterprise adoption to succeed, boards must buy into ai’s capabilities and ensure investment is being used effectively.

(Source: Research conducted by PwC)

By Kevin Don

Hi, I'm Kevin and I'm passionate about AI technology. I'm amazed by what AI can accomplish and excited about the future with all the new ideas emerging. I'll keep you updated daily on all the latest news about AI technology.