UK financial services leaders remain upbeat on growth outlook

UK financial services leaders remain upbeat on growth outlook, as AI investment rises amid macroeconomic uncertainty

• 51% of UK financial services (FS) CEOs feel very confident about the year ahead, despite a challenging macroeconomic and geopolitical environment 
• While 63% report more constrained access to capital than a year ago, AI investment is expected to increase year-on-year, with emerging technology seen as a clear route to disciplined, long-term growth
• However, obstacles to AI return on investment (ROI) remain, from regulatory and cultural barriers to limited use of standard AI metrics

Over half (51%) of UK financial services CEOs say they are very optimistic about their sector outlook for the next 12 months, as they ramp up investment in emerging technologies, even amid a more capital-constrained environment. The findings come from the latest EY-Parthenon CEO Outlook Survey of global CEOs, which includes 51 in the UK financial services (FS) sector. 

This optimism is despite a challenging domestic and global market. Less than a third (31%) of UK FS leaders surveyed report being very optimistic about the wider UK economic outlook, and just 16% are very optimistic about the global economy. Macroeconomics and geopolitical instability were viewed as the biggest risks to businesses over the next year (59% and 56% respectively), followed by cybersecurity (30%). Just 12% of UK FS CEOs feel very confident about the costs of doing business over the coming 12 months, and 63% report more constrained access to growth capital today than a year ago. 

AI investment seen as route to growth amid tightening capital supply

UK FS leaders acknowledge the need for pragmatism in their pursuit of continued growth in the current macroeconomic environment. Almost six-in-ten (59%) said they strongly agreed with the statement that disciplined growth and a clear path to profitability matters more than rapid market expansion. This is compared with 36% among global cross-sector leaders.

AI is emerging as the clear priority in these decisions. Almost nine in ten (88%) of the UK FS CEOs surveyed said their planned levels of AI investment had increased in 2026 compared with 2025. Ninety-five per cent of UK FS CEOs said they also expect their organisation’s appetite for M&A to increase over the next 12 months compared to 2025, with a quarter (25%) saying the ‘ability to enhance technology or AI capabilities’ was the most important driver in their M&A decisions. By comparison, just 17% of all global CEOs surveyed said the same. 

Martina Keane, EY UK & Ireland Financial Services Leader, said: “While financial services firms are undoubtedly operating against a challenging macroeconomic backdrop, UK CEOs are not standing still. Amid ongoing uncertainty, there is a strong determination among leaders to focus on what’s within their control – taking a pragmatic, deliberate approach to growth and investment decisions that set them up for the future. 

“AI and emerging technology are clearly at the heart of this strategy, and are becoming increasingly central, if not the most important factor, in transformation agendas and portfolio decisions, as firms look to drive long-term growth and resilience.”

Measurement, governance and culture remain challenges in delivering AI value  

While the UK FS CEOs surveyed said that AI is delivering tangible impact across a range of business areas, including finance and risk management, consistent AI measurement is still presenting challenges. Just 40% of the FS leaders surveyed said they use standard metrics to measure AI impact across major projects, while a quarter (25%) said they use defined KPIs for some AI projects, but not others. For 8% of UK FS leaders, AI impact is still measured informally or on a case-by-case basis.

Regulatory frameworks also present another potential obstacle to AI scaling. When asked, just 8% of UK FS CEOs said current AI frameworks provide clear guidance that supports strategy and innovation (compared to 19% globally). More than a quarter (27%) said the current AI regulatory framework increases compliance requirements and operational complexity. 

Some leaders also report internal resistance when seeking to generate value from AI. When asked about the biggest talent constraint, nearly a third (32%) of UK financial services CEOs cited cultural resistance to change, ranking above difficulty attracting specialist AI talent (20%) or limited AI and data skills within the existing workforce (18%).

Preetham Peddanagari, Chief Technology Officer, EY UK & Ireland, commented: “UK financial services leaders are moving past the question of whether AI can create value. The focus now is how quickly, safely and consistently they can scale it. Rising investment shows that AI is increasingly seen not just as a tool for efficiency, but as a driver of growth, resilience and competitive advantage.

“The next test is execution. Firms should focus on moving AI out of isolated pilots and embedding it into core processes, decision-making and day-to-day operations. That requires trust from employees, leadership teams and regulators in how AI systems work, how decisions are made and how risks are managed. Those that combine innovation with transparency, strong guardrails and continuous learning will be best placed to turn AI optimism into lasting advantage.”