EY survey shows some firms lack AI governance frameworks to ensure safe use

• The rapid evolution of AI and other emerging technologies presents huge growth opportunities within financial services. 
• But to navigate the complexities of AI governance effectively, firms must accelerate their efforts and allocate more resources to address evolving risks.
• Just over a third (34%) of UK financial services firms say they have fully integrated AI solutions within their operations, with 44% having many AI systems embedded.
  • Yet almost a quarter (24%) of respondents claim to have insufficient controls in place to protect against unauthorised access or corruption.
  • And 26% of respondents said they had no or limited controls in place to ensure AI systems adhered to laws and regulations.
• As for emerging AI models, nearly half (48%) of UK financial services firms say they are currently using Agentic AI, with a further 16% planning on using it in the next 6 months. 
  • 41% of firms say they are currently using AI enhanced augmented reality and virtual reality, with a further 26% planning on using it in the next 6 months.
  • While only 11% of firms are currently using quantum machine learning, nearly three-quarters (72%) plan to use it in the next two years.
• Amid challenges, 44% of respondents claim their firm is making significant investment to develop governance frameworks.
  • More than half (58%) of respondents said their organisations were investing heavily in conducting risk assessments for new AI models, while 52% said their firm was investing in developing employee training programs to build skills.

Preetham Peddanagari, EY’s UK Financial Services Technology Consulting Leader, comments: “The rapid evolution of AI and other emerging technologies presents huge opportunities and growth avenues within financial services, but without robust oversight and governance frameworks, the sector risks leaving itself and its customers exposed to significant threats. To navigate the complexities of AI governance effectively, firms must accelerate their efforts and allocate more resources to address evolving risks. It is critical to ensure that AI is used ethically and responsibly, and that unintended consequences are not enabled to arise. Progress in establishing watertight governance frameworks will pave the way for innovation – supporting firms to more confidently embed new AI models such as Agentic AI and quantum machine learning – while maintaining the highest standards of integrity."

Notes to editors:

EY carried out the Responsible AI Pulse Survey between March and June 2025, among 50 UK financial services c-suite executives (across industries including banking and capital markets, insurance, and wealth and asset management). 

The survey was conducted to understand how financial services firms are adopting and using AI and the risks it can pose.