AI adoption reaches 86% of UK financial services firms
New report highlights a technology landscape where generative AI and autonomous agents are growing rapidly.
Artificial intelligence adoption across UK financial services has increased, with 86% of firms surveyed by the Bank of England (BoE) and Financial Conduct Authority (FCA) reporting that they use the technology, up from 75% in 2024.
The regulators’ latest report, published on Monday 26 October, found that generative AI accounted for 56% of reported AI systems in 2026.
The technology is being used across a wide range of business functions, although Operations and IT remain the largest area of deployment, representing around 31% of reported systems.
AI agents widespread but lack autonomy
Meanwhile, the rise of AI agents is clear to see. Four in five respondents said they had deployed agents, while a further 14% planned to do so over the next 12 months.
However, their autonomy remains limited at present. While 80% of respondents reported using agents for decision support, in which humans make and execute the final decisions, only 2% said they had deployed agents with broad autonomy.
The report identified operational efficiency, automation and productivity as the main benefits firms currently derive from AI. Respondents expect benefits to grow over the next three years, especially in cybersecurity, operational resilience and revenue generation.
Risk concerns amid growing use
However, the report noted concerns over cyber threats and third-party dependencies alongside adoption. Data protection and security, third-party dependencies and risks specific to generative AI were the most prominent concerns for firms. Elsewhere, respondents highlighted cyber risk amplification and reliance on critical technology providers as areas likely to become more significant systemic risks.
Third-party AI systems accounted for 39% of reported systems, up from 33% in 2024. The report highlighted concentration among cloud and computing providers, with the three largest accounting for 79% of reported relationships.
Most firms reported formal AI governance arrangements, but oversight of third-party systems remained a key challenge. The regulators said the findings would inform their ongoing work on AI, operational resilience and financial stability.