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AI adoption in financial services is stuck in the middle

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  • Artificial Intelligence
Simon Hull Oct 20, 2026
AI adoption in financial services is stuck in the middle

 

Almost every financial services firm is now using AI. No surprise there. What might raise an eyebrow is that very few can show the value of the AI they’re using. Why is ROI proving so hard to pin down, and what are the firms seeing value doing differently from the rest?

TL;DR

 

Most financial services firms are stuck mid-journey, with AI working in pockets but not spreading
Proving ROI is now the top AI priority for leaders, but most organisations are measuring activity rather than value
The small group seeing real returns have redesigned workflows around AI instead of adding tools to existing ones
Agentic AI moves the question from what AI suggests to what it's allowed to do

Where are we now?

When we polled senior financial services leaders at a recent industry event, not one person described their organisation as operating AI at full scale. More than half (53%) placed themselves at 'scaling attempts' where AI is established in one or two areas, but not spreading for reasons that aren’t clear.

The rest were still experimenting, or committed but stuck. Spending seriously while the board asks about returns.

When asked for their single biggest AI priority, 40% chose proving value and ROI, twice the share of any other option.

This is not an isolated finding. McKinsey's latest State of AI research found that most organisations say AI has made their people more productive, yet only around a third can point to any impact on profit.

Why are firms stuck in the middle?

Many financial services firms are in the middle of the maturity curve where the easy wins run out. First-wave use cases (a drafting copilot, contact-centre summarisation or coding assistant for example) sit inside single teams, roll out with little disruption and make individuals faster.

The next wave cuts across functions, depends on shared data, needs risk and compliance from the start and asks people to do things differently. What worked for the pilots doesn't carry over.

Firms admit they only partly understand the AI they already run. Scaling that is a hard sell to a risk committee, and rightly so.

What to do
differently now

Look at where AI is already working and ask what's stopping it travelling to the next team.
Plan the second wave of use cases as cross-functional change, with risk and data owners involved from day one.
Invest in understanding the AI you already run before adding more.

Why is AI ROI so hard to prove in financial services?

Most organisations measure the wrong thing. Licences, active users and prompts per week are easy to report, but they describe activity, not whether the business is performing better.

Productivity is the next trap. Saving ten minutes a day for thousands of employees sounds significant. But that time is spread thinly and rarely shows up in a P&L unless someone decides what the freed-up capacity is for.

In financial services, much of the value in risk, compliance and operations is avoided cost or reduced exposure, which is real, but harder to count. And with AI spend split across technology, operations and business budgets, nobody owns the full picture.

There are signs of progress. Evident's research suggests the fastest returns come from redesigning repeatable, high-volume workflows and validating the outcomes directly with finance and business leaders.

What to do
differently now

Agree the baseline and the success measure with finance before a use case is built.
Report on business outcomes, such as cycle time, cost to serve or loss rates, rather than usage.
Decide upfront what happens to capacity AI frees up.
Give one owner the full view of AI cost against return.

What are successful firms doing differently?

McKinsey's research shows that the key to successful AI is mostly organisational. High performers are almost three times as likely to have redesigned their workflows around AI. They set goals for growth and innovation as well as efficiency. Senior leaders are visibly committed, they have defined ways of measuring impact, and they invest with more conviction. They treat AI as a change to how the business operates.

We see the same in our own financial services work. The shift that matters most is usually from a handful of enthusiastic early adopters to organisation-wide, governed usage, with shared platforms, clear ownership and measures agreed in advance.

What to do
differently now

Pick one end-to-end process and redesign it around AI, rather than adding AI to each step.
Set at least one objective that's about growth or new value, not only cost.
Make senior sponsorship visible, with leaders using the tools themselves.
Build shared platforms so success in one team can be reused by the next.

What does agentic AI change for financial services?

Back in 2024, the Bank of England and FCA found very few fully autonomous AI use cases.

That's changing quickly. The FCA's AI Live Testing programme now includes major banks testing agentic AI and agentic payments. Its Mills Review uncovered real consumer appetite for AI that acts on people's behalf, alongside concerns about trust and control.

Firms need to know who is answerable for an agent's decision, what it can do without a person in the loop, and how to evidence the reasoning afterwards.

Governance designed for predictable systems and slow change wasn't built for that, and tightening the existing controls won't close the gap.

There's a commercial angle too. If customers delegate tasks to their own AI agents, firms need to be easy for agents to work with.

What to do
differently now

Define the limits of what agents can do on their own, before they're in production.
Build identity, accountability and traceability into agentic designs from the start.
Consider how your products and journeys work when the customer is represented by an agent.

What does all this mean for financial services leaders?

What matters now is the ability to say, with evidence, what AI investment is worth, and a willingness to change how the business works to capture it.

That starts with an honest view of where value needs to show up, measures agreed before anything is built, and the patience to prove it in one place before scaling it everywhere. It also means treating AI as an ongoing commitment. People, governance and operating models must move alongside the technology.

If your organisation is somewhere in the middle and wants a clearer route to value, we'd welcome the chance to talk it through.

 

FAQs

How widely is AI used in UK financial services?

Most UK financial services firms now use AI, but few operate it at scale. In our poll of senior leaders, nobody said they did.

Most firms measure usage rather than outcomes, productivity gains are spread thinly unless work is redesigned, and much of the value in risk and operations comes as avoided cost.

McKinsey found high performers are far more likely to redesign workflows, pursue growth as well as efficiency, and have committed leaders and clear impact measures.

Agree a baseline and success measure with finance before building, track business outcomes such as cost to serve or cycle time, and decide upfront how freed-up capacity will be used.

Firms need clear accountability, defined limits on autonomy and traceable decisions. The FCA is already testing agentic use cases with firms.

Meet the author

Simon Hull is Head of Financial Services at CreateFuture. With over 20 years in banking and wealth, including UBS, Barclays, BlackRock and Deutsche Bank, he helps firms turn AI strategy into practical, accountable change.

 

Simon Hull

 

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