UK-based Lloyds Bank has released artificial intelligence-focused findings from its annual Financial Institutions Sentiment Survey, capturing insights from over 100 senior decision makers at banks, insurers, private equity shops, and asset and wealth managers. It shows a shift in sentiment, with institutions viewing AI as more of an opportunity than a threat.

According to the latest Lloyds Bank Financial Institutions Sentiment Survey (FISS), the sector is entering a new phase of AI maturity, with firms reporting tangible business benefits and increased investment in the technology over the last 12 months. 

The annual survey, which captures insights from over 100 senior leaders across the UK’s largest banks, asset and wealth managers, insurers, and financial sponsors, reveals a sharp rise in AI adoption and impact. The annual survey opened on 1 April 2025 and ran until 19 May 2025.

Fifty-nine per cent of institutions now report improved productivity from AI, compared with 32 per cent in 2024, while 33 per cent are enhancing client experience compared with 14 per cent in 2024. Twenty-one per cent of respondents also said that AI is directly driving business growth versus 8 per cent in 2024.

The momentum is fuelling a shift in sentiment, with 91 per cent of institutions now viewing AI as more of an opportunity than a threat, up from 80 per cent in 2024. With confidence rising, investment is increasing. Over half of institutions said they plan to increase AI investment over the next 12 months, with a further 22 per cent maintaining current levels of spend.  

Looking ahead, institutions see AI as a strategic lever, with 54 per cent expecting it to deliver competitive advantage, and 53 per cent anticipating cost savings, the survey reveals. Fifty-two per cent of respondents also believe that it will drive business growth while 50 per cent said it will help build a more technologically skilled workforce.

To support this, nearly half of institutions have set up dedicated AI teams, while 20 per cent have partnered with external AI providers to accelerate adoption. Beyond this, there is optimism about AI’s potential to benefit the broader economy, with 63 per cent of institutions believing that advancements in AI will support UK economic growth. However, many feel that further momentum is needed, with 70 per cent saying that the UK should accelerate its national AI strategy to keep pace globally, the survey reveals.

“The productivity uplift alone is a compelling sign that these technologies are already reshaping the industry. We remain focused on supporting financial institutions to embed the technology in a way that drives measurable outcomes,” Lisa Francis, head of institutional coverage at Lloyds Bank Corporate & Institutional Banking, said.

“We’re seeing AI move firmly into the execution phase. Institutions are building on early investments and delivering tangible outcomes, such as productivity gains and sharper customer insights,” Rohit Dhawan, director of AI and advanced analytics at Lloyds Banking Group, added. “At Lloyds, we now have over 800 models in operation, representing more than 200 AI use cases, designed to enhance colleague and customer experience, and we believe that, with the right focus, the UK has an opportunity to lead in responsible AI adoption across financial services.”