The adoption of AI in banking and finance is reshaping how institutions manage risk, improve compliance, and deliver personalised customer experiences. Financial services have always been quick to adopt technology, but artificial intelligence has provided more than automation tools. Its use is changing how banks and financial firms create value.
From digital transformation in banking to fraud detection and personalised wealth management, AI is touching every aspect of the sector. This article explores what AI in financial services means today: the opportunities, the risks, and the workforce transformations that will define the next decade.
Our latest report, Adapting to Intelligence, How AI is Reshaping Work for Employers and Employees reveals that the banking and financial services sector that is moving faster than most. 41% of banking and finance leaders describe their organisations as “open but cautious” when it comes to AI, while a further 35% see themselves as “optimistic and proactive”.
More than two thirds of firms are taking AI seriously, with 30% having adopted a formal AI strategy already and another 38% actively developing. For banking, AI is already embedded in risk management, fraud detection, and compliance monitoring. In investment and retail banking, firms are experimenting with AI-driven customer service, algorithmic trading, and digital onboarding. The rapid integration of AI in banking and finance reflects the high stakes of the industry: with pressure from regulators, competition from fintech, and rising customer expectations, digital transformation in banking is now a necessity.
Financial services leaders largely view AI as a catalyst for efficiency, risk management, and innovation. Leaders in banking and finance repeatedly pointed to AIs role in strengthening compliance functions, detecting fraud, and monitoring transactions at scale. Beyond risk, many banks are experimenting with customer-facing tools such as AI-powered chatbots, personalised recommendations, and digital onboarding solutions designed to improve customer experience. Revenue generation is also firmly on the agenda, with firms exploring AI in finance for predictive analytics, portfolio optimisation, and cross-selling opportunities.
Despite this enthusiasm, concerns remain including:
These concerns highlight a sector that recognises the transformative power of AI in banking and finance but is still working to ensure its people are equipped to embrace it responsibly.
The financial services sector is ahead of many others, but challenges remain. 42% of leadership teams describe themselves as “very aligned” on AI adoption, a much higher figure than in the public or other private sectors, yet 46% admit only “somewhat aligned”, showing there is still work to do.
Operational barriers limiting the adoption AI in banking and finance are also familiar:
For global banks, data fragmentation across legacy systems is a major stumbling block. For smaller firms, the issue is often resources: they know AI in banking and finance can deliver value but lack the budget or expertise to embed it effectively.
Recruitment strategies tell a more cautious story. 50% of the banking and financial services firms we surveyed admitted that recruiting for AI-related skills is not currently a focus, with only a small minority, just over 10%, proactively seeking AI capability across roles. A further third said they consider AI skills an advantage but not essential, suggesting that while organisations are building AI strategies, they are not yet embedding those priorities into their hiring plans.
This gap risks undermining progress. Banks and financial services firms are setting ambitious digital transformation goals, but without aligning recruitment to those ambitions, the sector may lack the niche talent to deliver them. If employers fail to invest in training and recruitment, they risk losing talent to fintech challengers and innovative competitors who are already embedding AI expertise into their workforce strategies. In short, adoption of AI in banking and finance is accelerating, but the workforce strategy to support it is still catching up.
For financial services leaders, the next step is to move from experimentation to enterprise-wide adoption. There are five actions firms looking to adopt AI in banking and finance functions should prioritise:
AI in banking and finance has moved beyond pilots and proofs of concept. It is now central to the sector’s future. But organisational readiness is uneven. Despite 30% banking and financial services firms already having an AI strategy, half are not hiring for AI skills. Leaders must close this gap by aligning strategy, culture, and recruitment. AI will not replace people in financial services, but it will redefine what skills and mindsets are essential in the workforce.
The winners will be the firms that treat AI not just as a technology challenge, but as a people challenge, investing in skills, building trust, and embedding ethics into every stage of digital transformation in banking.
At Goodman Masson, we specialise in helping organisations navigate AI-driven workforce transformations. Our expertise ensures that your workforce is ready to thrive in an AI-powered future.
Download the report today to discover actionable strategies for empowering your team and accelerating your AI journey or contact us to discuss how we can support your hiring strategy.
Discover how risk, compliance, and customer experience are all being transformed by the impact of AI in banking and finance on both organisations and employees.
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