A new thought leadership report from Aveni has found that while AI is rapidly moving up the strategic agenda for financial services leaders, many firms remain underprepared for large-scale, responsible adoption.
The report, Transformation Nation: The AI Innovation Shift in financial services, draws on interviews with senior figures across wealth management, life insurance, financial advice and consultancy to assess how AI is being used in practice across UK financial services.
Rather than focusing on future promises, the research examines real operational deployments, highlighting where early use cases are already delivering value and where structural challenges continue to limit progress.
According to the findings, firms are beginning to see tangible productivity benefits from AI in areas such as quality assurance, documentation and workflow automation. These early applications are helping teams streamline internal processes and reduce manual effort, particularly in heavily regulated environments where compliance and reporting requirements remain resource-intensive.
However, the report suggests that overall maturity remains uneven. While interest in AI has accelerated significantly, many organisations are struggling to scale these initiatives in a safe and sustainable way. Governance, explainability, data quality, regulatory alignment and cultural readiness are repeatedly identified as the main constraints on further progress.
Aveni CEO Joseph Twigg said, “AI is now central to conversations about the future of financial services, but there is still a wide gap between ambition and preparedness. With this report we wanted to move beyond speculation and marketing narratives and understand how leaders are actually navigating AI adoption, what’s working, what isn’t, and what responsible transformation really looks like in a highly regulated sector.”
He added that trust and accountability must remain core to any AI strategy in financial services. “Financial services has a unique responsibility when it comes to AI,” Twigg said. “Trust, accountability and customer outcomes must sit at the centre of adoption. Our aim with this report is to provide a realistic benchmark for the industry, one that supports informed decision-making rather than fear-driven or hype-led implementation.”
Those contributing to the research included Nick Holmes, managing director, client services and oversight at Quilter Cheviot; Myrsini Alexandratou, head of strategy and innovation, COO at Royal London; Gregg Schofield, head of advice strategy at Wesleyan; James Richardson, head of innovation at Shackleton; and Mike Barrett, consulting director at Lang Cat.
The report also highlights a noticeable shift in executive priorities. Many leaders now view AI as a core operational capability that will shape future operating models, adviser workflows and customer engagement, rather than a standalone innovation project.
Despite this, respondents caution against relying on isolated pilots or generic tools. Instead, long-term success is expected to depend on deeper organisational change, including redesigned processes, stronger oversight frameworks and closer collaboration between financial institutions, technology providers and regulators.
Looking ahead, Transformation Nation outlines what the next 12–18 months could bring for the sector. This includes the emergence of more specialised, finance-specific AI models and the early adoption of agent-based systems. While these technologies may unlock further efficiency gains, they are also expected to increase scrutiny around assurance, governance and risk management as regulatory expectations continue to evolve.
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