Despite increasing efforts to adopt artificial intelligence (AI), many firms remain in the early stages of implementation, hindered by significant gaps in workforce training and regulatory readiness.
Only 9% of firms report being prepared for upcoming AI regulations, while 27% have initiated training programs focused on generative AI (GenAI). This is despite 77% of leaders acknowledging their workforce's limited capabilities in applying GenAI effectively. Concerns about transparency and explainability were cited by 68% of firms as the most pressing ethical issues, followed by privacy concerns at 55%.
Sheila Flavell, COO at FDM Group, emphasized the importance of prioritizing workforce development alongside technology investment. "Training programs tailored to GenAI are essential to ensure employees can harness its capabilities effectively," she said. Flavell urged organizations to adopt experiential learning approaches, using real-world scenarios to help staff identify risks and perform critical AI-supported tasks. By focusing on upskilling, firms can create a workforce that not only embraces GenAI but also uses it responsibly to drive innovation.
Anna Anthony, EY UK Financial Services Managing Partner, highlighted the competitive risks of falling behind in AI integration. "GenAI is transformative, but firms must accelerate upskilling and regulatory preparedness to remain competitive," she stated. While some organizations are ahead, many continue to struggle with foundational challenges. The urgency is reflected in the data, with 82% of executives planning to increase GenAI investment in the next year as AI is projected to affect up to 25% of financial services roles, particularly at the entry level.
Arjun Mahajan, Chief of Client Partnerships at AND Digital, stressed the importance of combining technology adoption with employee empowerment. "If financial institutions lack the personnel to oversee AI implementation, they risk not only missing out on its benefits but falling behind the competition," he said. A "people and innovation" approach is critical, integrating AI into operations in ways that enhance productivity while ensuring ethical use. The survey reinforces the need for structured training initiatives, with 63% of firms still in the planning stages for GenAI programs, alongside robust frameworks for compliance and responsible AI application.
