Summary
What this article covers in 30 seconds
- AI is becoming more embedded across retail banking, lending, insurance and investment services.
- Research cited by IBS Intelligence found one in five UK adults would be open to AI making financial decisions for them.
- Around 26% of consumers said they trust general-purpose AI tools for financial advice despite limited awareness of recourse issues.
- Consumer Duty, SMCR and operational resilience remain relevant as AI becomes part of business processes.
Artificial intelligence (AI) is becoming increasingly embedded across financial services, from retail banking and lending to insurance and investment services. As adoption grows, firms are facing greater scrutiny over how AI is used, monitored and governed.
Recent findings highlighted in a review of the future of retail financial services suggest that AI is moving beyond basic assistance, with consumers becoming more comfortable with the idea of technology making financial decisions on their behalf. The research found that one in five UK adults would be open to AI making financial decisions for them, particularly in areas such as debt advice, pensions and investments.
However, the review also identified a gap between trust and risk awareness. Around 26% of consumers said they trust general-purpose AI tools for financial advice, despite limited awareness that formal routes to recourse may not be available if those tools provide incorrect guidance.
For regulated firms, this places an even greater emphasis on accountability. Existing frameworks, including the Consumer Duty, Senior Managers and Certification Regime (SMCR), and operational resilience requirements, remain highly relevant as AI becomes more deeply integrated into business processes.
Joe Norburn, CEO of TCC Group and Recordsure, commented:
“Firms have increasingly needed to demonstrate where AI has been deployed, who remains responsible for decisions and how customer outcomes are being monitored.”
With consumers becoming increasingly comfortable engaging with AI, firms may need to consider not only how AI is governed internally, but also whether customers fully understand where decisions are being supported or influenced by automated systems.
As firms continue to explore AI’s potential benefits, the ability to evidence how AI-assisted decisions are made, maintain effective oversight and demonstrate accountability will become increasingly important as firms seek to balance innovation with regulatory expectations.
Frequently asked questions
AI governance matters because firms need evidence and accountability as AI becomes more embedded in financial services.
One in five UK adults would be open to AI making financial decisions for them.
Consumer Duty, SMCR and operational resilience requirements remain relevant as AI becomes more integrated into business processes.
Firms should evidence where AI is deployed, who remains responsible for decisions and how customer outcomes are monitored.