Skillcast Report Highlights AI Governance Gap and Accuracy Risks in UK Banking

A new report from Skillcast reveals that while 72% of UK banking and financial services employees use artificial intelligence daily, nearly one-third encounter inaccurate or misleading outputs. For fintech professionals, this highlights a critical governance gap where rapid adoption is outstripping formal training, potentially exposing firms to significant regulatory and operational risks.

What was announced

The ‘AI Adoption in the Workplace Report’ by Skillcast surveyed 500 full-time UK employees across sectors including financial services, government, legal, and insurance. It found that banking and financial services lead the way in AI integration, with 72% of respondents using the technology at least once during a typical workday. However, 32% of these workers reported that AI produces inaccurate or misleading results at least half the time.

Accuracy has emerged as the primary concern for workers in the sector, outranking data privacy, security, and job displacement. Despite the high frequency of use, the research identifies a lag in formal oversight. One in five workers reported receiving no organisational guidance on AI use in the past year. Among those who did receive guidance, 39% noted it was communicated informally or verbally rather than through formal policy or structured training.

The report also notes that the sector shows signs of governance maturity compared to other industries, with 61% of respondents confirming they have access to a clear AI policy. This aligns with broader industry trends; a Skills England survey indicates that 75% of financial services firms currently use AI, with another 10% planning deployment within three years. Furthermore, 93% of firms in the sector believe AI and machine learning will be the most impactful technologies over the next five years.

"AI tools have moved from being an experimental technology to being a standard part of everyday working life for many employees. The challenge for businesses now isn’t encouraging people to use AI; it’s making sure tools are being used safely, consistently, and with the right safeguards and training in place."

Vivek Dodd, CEO of Skillcast.

The companies involved

Skillcast is a provider of compliance training and e-learning solutions, focusing on helping organisations manage regulatory risk and staff integrity. The firm operates in a landscape increasingly defined by the Financial Conduct Authority (FCA), the UK’s primary financial regulator. The FCA, which maintains the website fca.org, is responsible for ensuring that financial markets function well and that firms adhere to standards of conduct. Its evolving guidelines are a central driver for the governance frameworks discussed in the Skillcast report.

The research also draws on data from Skills England, a body focused on identifying and addressing skills gaps within the UK economy. By tracking the deployment of technologies like machine learning, Skills England provides the broader economic context for the rapid digital transformation seen in the City. Pollfish, a market research platform, is also active in the data collection space. Together, these organisations represent the intersection of regulation, professional development, and technological advancement. While the banking sector shows higher governance maturity than other industries surveyed, the reliance on informal communication suggests that even established firms are struggling to institutionalise AI safety protocols at the same pace as software deployment.

What FF News has reported before

FF News has closely tracked the intersection of AI and financial services. Recent reporting on Wealthtime Research Reveals 28% of Clients Now Use AI Tools to Support Financial Advice mirrors Skillcast's findings, showing that both professionals and consumers are increasingly reliant on these tools. We have also covered how firms are operationalising AI for regulatory hurdles, such as when Equals Partners with Aiimi to Automate GDPR Compliance and Data Subject Access Requests.

Furthermore, the role of the regulator remains a constant theme. FF News reported on the FCA Warns Students Over £1.5Bn in Forgotten Child Trust Funds, and explored professional standards in FCA CPD Flexibility Does Not Mean Lower Insurance Standards, Warns Zing365. These stories underscore a market where technological speed must be balanced against the rigorous oversight required by the FCA.

What this means

The industry is currently in a "wild west" phase of AI implementation where the front office is moving faster than the compliance department. While 61% of firms having a policy is a start, the fact that a third of workers see "hallucinations" or errors half the time is a systemic risk. This puts significant pressure on Chief Risk Officers and compliance leads to move beyond static PDFs and into real-time monitoring of AI outputs. The sector faces a looming question: if AI is already making day-to-day decisions, who bears the liability when an inaccurate output leads to a breach of the FCA’s Consumer Duty?