Budget reinforces UK's AI ambitions for financial services
Economy-wide investment plans come as ministers push banks, insurers and wealth managers to accelerate adoption of artificial intelligence
The government's latest Budget, published today, has reinforced efforts to accelerate artificial intelligence adoption across UK financial services, underlining the technology's growing importance to the country's economic strategy.
While the Budget contains no major AI measures aimed specifically at banks, insurers or wealth managers, it forms part of a wider government drive to expand AI capability, investment and skills across the economy.
Ahead of the Budget, Chancellor John Healey announced a package of AI investments aimed at expanding infrastructure, supporting home-grown technology firms and developing AI skills across the country. The plans include investment in AI chip design capability, a new AI Centre of Excellence in Manchester and funding to support research into the impact of AI on jobs and industry.
The announcement follows publication of the Treasury-backed Financial Services AI Adoption Plan, which called for faster deployment of AI across the sector and described wider adoption as a strategic imperative for growth, competitiveness and financial resilience.
Produced by industry AI champions Harriet Rees and Dr Rohit Dhawan, the report highlighted the growing use of AI in areas including fraud detection, risk management and operational efficiency, while arguing that firms must move beyond isolated pilot projects and deploy the technology more widely across core business functions.
The report also identified opportunities spanning AI-powered financial advice, resilience and risk controls, skills development and emerging payment technologies, including so-called agentic payments. The government has accepted the report's recommendations and said it will work with regulators and industry on the next steps.
According to the report, financial services is among the sectors best placed to benefit from AI adoption, with survey data cited from the Financial Conduct Authority and Bank of England indicating AI usage among surveyed firms of around 75%.
See also: https://www.gov.uk/government/news/chancellor-unveils-britains-ambitious-plan-for-ai