Most banks expect Generative AI to eventually replace executives in the UK

By Puja Sharma

FintechOS, the global leader in fintech enablement, announced the launch of a new study ‘Generative Artificial Intelligence: The Technology Polarising the Financial Services Industry’, which reveals that 66% of UK banking execs expect GAI “will eventually take their job”.

The report, the largest of its kind, explores stark divisions among UK banks on the expectations, implementation, and impact of this groundbreaking technology. However, amidst these often-conflicting views, there is one common consensus: the expectation that GAI will inevitably reshape the workforce and displace jobs.

How do UK banks feel about GAI?

• GAI is seen almost equally as friend and foe: The UK banking industry’s perspective on GAI is marked by a mixture of excitement and indifference. Approximately 22% of those surveyed described themselves as “excited”, while 21% claimed they were “curious” of the technology, and 20% instead claimed to be “indifferent”, demonstrating GAI’s divisive nature. When asked whether they viewed the technology as friend or foe, 40% opted for “friend”, 36% stated “foe”, and 24% picked “neither”.
• UK bankers split over what concerns them most about GAI: UK bankers cannot seem to agree on what the most pressing concern is about GAI. 26% of respondents expressed disquiet at the reduction in human oversight, with a further 26% apprehensive at the potential for discrimination and bias. At 24%, a lack of human understanding of customer emotions and concerns was another notable worry.

Are UK banking institutions implementing and investing in GAI today?

• Most UK banks aren’t yet using GAI but are investing in its research and implementation: Only 34% of UK banking institutions are using GAI today, but 47% are investing in GAI research, and 44% in the technology’s implementation. Of those currently investing in GAI, most (31%) are researching how it can help with customer service enquiries, though those currently implementing GAI are more focused on using it for lending automation (27%).
• UK banks are investing millions in GAI: A third (32%) of UK banking institutions are currently investing between £1.7 million and £4 million, with a further 20% investing between £4.1 million and £8 million.

The immediate business impact of GAI

• UK banks believe customer service enquiries will most benefit from GAI: 24% of UK banking organisations believe that customer service enquiries would be the business area that would benefit most from GAI implementation. 22% of respondents indicated that personalisation of offerings would see an uptick, and a further 22% believed that pricing optimisation would be the most improved.
• Banking execs split on what the greatest impact of GAI might be: There was little consensus between UK bankers when asked what they hoped the greatest impact of GAI might be. 17% stated they hoped new revenue generating services would be developed, while 16% were interested in reduced product R&D research and design time, another 16% were looking for improved product R&D simulation and testing, and a further 16% were hoping for the elimination of human error.

“GAI is a terrain marked by both excitement and apprehension, and our study explores the polarised sentiment that surrounds this groundbreaking technology. While opinions within the banking industry are deeply divided, there is one common consensus: the expectation that GAI will boost revenues but inevitably reshape the workforce and displace jobs,” said Teodor Blidarus, co-Founder and CEO at FintechOS. “Every bank has started its GAI journey and it’s imperative to take the first step – even if it’s a small one – to avoid being left behind. Only by starting the journey now and understanding the implications can we mitigate the risks of GAI and better reap the rewards.”

Key findings

• The UK banking industry is split on whether GAI is “friend” (40%), “foe” (36%), or “neither” (24%), and is characterised by a blend of excitement, curiosity, and indifference.
• 47% of UK banking institutions are currently investing in GAI research, with 44% already investing in its implementation. Most banking organisations are investing between £1.7 million and £4 million.
• More than half (60%) of banking executives anticipate an average 20% increase in revenue due to GAI within the next three years.
• Half of UK bankers (50%) believe that GAI will result in job losses at their organisations, with an expected headcount reduction of 11-20% over the next three years.
• The majority (66%) of UK banking executives expect their jobs will eventually be replaced by GAI.