The Financial Institutions Sentiment survey published by Lloyds found that adoption of AI has doubled in the last year - 63% of firms are investing in AI, compared to 32% in 2024.

More than eight out of ten (81%) now view AI as a business opportunity, an increase on the 56% recorded last year.

The survey also found that UK banks are reporting tangible benefits from AI - 32% are seeing gains in productivity, 22% are experiencing a competitive edge, and 18% are beneftting from AI-driven insights with 69% stating that they expect more benefits to come.

"The focus has shifted from merely exploring AI to making practical investments and applications," said Lisa Francis, head of institutional coverage, Lloyds Bank Corporate & Institutional Banking.

"As a result, many institutions are already experiencing the benefits, such as enhanced productivity, deeper customer insights, and a stronger competitive edge. While the full impact across all business areas is yet to be realised, this will evolve as institutions continue to innovate, test and learn.”

The survey featured 100 ’senior decision-makers’ among banks, wealth managers, insurers and financial sponsors.