Aveni, the Edinburgh-based AI fintech, has released a new report warning that the UK financial services sector faces a “reality check” regarding artificial intelligence, highlighting a significant gap between executive ambition and operational readiness.
The report, titled Transformation Nation: The AI Innovation Shift in Financial Services, draws on insights from senior leaders across wealth management, insurance, and consultancy. It finds that while interest in AI is accelerating, actual maturity levels across the industry remain uneven.
Barriers to scaling
According to the findings, firms are already realizing measurable productivity gains in specific early use cases, such as quality assurance, documentation, and workflow automation. However, the transition from isolated pilots to scalable, enterprise-wide adoption is proving difficult.
The report identifies several defining constraints holding the sector back, including governance, explainability, data quality, and regulatory alignment. Cultural readiness was also cited as a significant hurdle.
Joseph Twigg, CEO at Aveni, commented on the disparity between hype and reality: “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.”
Shifting priorities
The research suggests a shift in how executives view the technology. Leaders increasingly see AI not as a “bolt-on” tool but as a core capability that will fundamentally reshape operating models and adviser workflows.
However, the report cautions that generic tools will not suffice. Success over the next 12 to 18 months will likely depend on the adoption of specialised, finance-specific AI models and the emergence of “agent-based” systems. This evolution will require heightened scrutiny around assurance and risk management as regulatory expectations continue to grow.
Twigg added: “Financial services has a unique responsibility when it comes to AI. 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.”
The report includes contributions from senior figures at major industry players, including Quilter Cheviot, Royal London, Wesleyan, Shackleton, and the Lang Cat.
Based in Edinburgh, Aveni specialises in domain-specific large language models (LLMs) for the financial sector. The company is known for developing FinLLM, a large language model built specifically for financial services to align with FCA guidelines.
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