The UK Treasury has instructed the Financial Services Skills Commission (FSSC) to produce a report on AI skills needs, training and innovation in financial services.
With AI talent in high demand and uptake of the technology surging, the UK Government is taking a future forward look into the likely impact of the technology on the financial sector's business practices, workforce, and skills needs over the next five to ten years.
The report is expected to provide an assessment of the building blocks required for successful adoption, deployment and use of AI and a clear plan on how to build the skills that the sector will need to remain globally competitive.
The FSSC says it will work with the City of London Corporation, TheCityUK, Lloyds Banking Group, and PwC to devise a blueprint.
The Government has set a mid-2027 deadline for delivery, which may be too little too late given the already sizeable impact that AI is already having on everyday financial decision-making. Recent research from Lloyds revealed that more than half of UK adults have used artificial intelligence in the last year to help them manage their money - making personal finance the nation’s number one use of AI.
Speaking on the publication of the research, Jas Singh, CEO, consumer relationship, Lloyds Banking Group, remarked: "As AI becomes a bigger part of our financial lives, trust is the next frontier. People want to be sure the information they receive is accurate, secure and truly tailored to their needs. That’s why banks have a vital role - not just in providing cutting-edge technology, but in combining it with trusted expertise and a deep understanding of our customers."
with the understanding that this timescale is flexible.
• An assessment of the impact of these technologies on the sector’s growth
potential and productivity, at national and regional levels, and on customers.
• An assessment of the skills that the financial services sector will need for the
successful adoption, deployment and use of these technologies.
• A clear plan of how to build the skills that the sector will need, with
actionable and practical steps for the whole skills system, including
employers, employees, education and training providers, government at all
levels, and others. This plan should consider the broader economic and fiscal
picture, including the outcome of the Spending Review.
• A cost-benefit analysis of the measures that are proposed, where
appropriate.
The Financial Services Growth and Competitiveness Strategy set mid-2027 for the
delivery of this research, in the form of a final report to HM Treasury. We do not
preclude that the report could be delivered earlier, if it can be successfully
completed more rapidly, nor that there may be more than one report, if it would
assist you and the sector to produce a series of deliverables during its progress.
Please continue to work with my officials and Skills England, and engage them
on the progress of this work.
I also understand that you will be working closely with the City of London
Corporation, TheCityUK, Lloyds Banking Group, and PwC to deliver this. Please
pass on my thanks for their contribution to this important work.
We look forward to its completion as a significant milestone in getting the sector
ready for the immense challenges that await.
Yours sincerely,
LUCY RIGBY MP
ECONOMIC SECRETARY TO THE TREASURY