91% of institutions now view AI as more of an opportunity than a threat, compared with 80% last year. 51% of respondents surveyed plan to increase investment in AI over the next 12 months, and a 22% expect to maintain current spending.
Institutions are positioning AI as a strategic lever. For instance, 54% expect competitive advantage, 53% see cost savings and 52% anticipate business growth. Half said it would help build a more technologically skilled workforce.
AI’s “black box” funds and energy consumption raise concerns
48% of firms have built dedicated AI teams and 20% have partnered with external providers, showed the survey. 63% believe AI will support UK economic growth, though 70% said the UK needs to accelerate its national AI strategy to keep pace globally.
Lisa Francis, head of institutional coverage at Lloyds Bank Corporate & Institutional Banking, commented: “This year’s survey findings show that UK financial institutions are not only investing in AI, they’re building it into the fabric of their businesses and seeing measurable gains. The productivity uplift alone is a compelling sign that these technologies are already reshaping the industry. We remain focused on supporting financial institutions to embed the technology in a way that drives measurable outcomes.”
Rohit Dhawan, director of AI and advanced analytics at Lloyds Banking Group, said: “We’re seeing AI move firmly into the execution phase. Institutions are building on early investments and delivering tangible outcomes, such as productivity gains and sharper customer insights. At Lloyds, we now have over 800 models in operation, representing more than 200 AI use cases, designed to enhance colleague and customer experience, and we believe that, with the right focus, the UK has an opportunity to lead in responsible AI adoption across financial services.”
