Lloyds Banking Group Expects Over £100 Million in Value From Next‑Generation AI in 2026

WHY THIS MATTERS: The financial metrics released by Lloyds Banking Group mark a critical milestone in the maturation of Generative AI within the financial services sector, moving the conversation from technological hype to proven economic value. The delivery of £50 million in 2025 and the ambitious forecast of over £100 million in 2026 validates the operational benefits of large-scale deployment. The broader industry significance lies in the simultaneous, two-pronged strategy: enhancing customer interactions with intuitive digital experiences and radically transforming colleague efficiency through tools that slash coding time and internal search duration. Crucially, the bank’s explicit plan to scale Agentic AI—systems designed for complex, goal-oriented tasks—signals a strategic commitment to the next phase of Digital Transformation. This shift establishes a blueprint for how incumbent financial institutions can responsibly integrate intelligent automation across the enterprise to drive both cost reduction and service excellence.

As part of its financial results released today, Lloyds Banking Group announced that generative AI (GenAI) has delivered around £50 million of value in 2025, with more than £100 million in additional value expected in 2026 through the continued scaling of both GenAI and agentic AI across the Group.

In 2025, the Group deployed over 50 GenAI solutions, transforming how customers interact with the bank. This includes faster and more intuitive in‑app search experiences, along with quicker, more accurate responses across customer operations, empowering colleagues to provide enhanced support in branches and over the phone.

In 2026, the Group will scale cacross the bank, maximising today’s tools and launching many more use cases, including significant strategic investments in agentic AI, to deliver faster, more seamless experiences for its 28 million customers.

AI transforming how colleagues work

AI is already making day‑to‑day work simpler, faster and more efficient for thousands of colleagues across the Group, with tools that include:

• Athena Knowledge Management Tool: Athena is an AI‑powered internal search and knowledge assistant that helps colleagues quickly find information to answer customer queries. Used by 20,000 colleagues, it has reduced search times by 66% on average, enhancing customer service and convenience.

•       GitHub Copilot for Engineers: Around 5,000 engineers are using AI‑supported coding tools, driving a 50% improvement in converting code for established systems, accelerating upgrades to key customer‑facing technology.
•       AI HR Assistant: Resolving around 90% of HR queries correctly on first contact, this tool gives colleagues rapid, reliable support while reducing administrative workload across HR teams.

Accelerating AI in 2026

To build on this momentum, Lloyds Banking Group will deepen its AI capabilities throughout 2026. In addition to the new GenAI and agentic AI solutions planned for this year, a major milestone in 2026 will be the full customer rollout of the Group’s AI-powered financial assistant.

The assistant will give customers quicker answers, tailored guidance and more intuitive support within the mobile app. Over time, it will expand beyond everyday banking to help customers navigate savings, borrowing, investments and protection.

Alongside this, Lloyds Banking Group will continue to strengthen colleaues’ AI literacy by launching a new AI Academy, helping teams across the organisation develop the skills and confidence to use AI responsibly and effectively

Ron van Kemenade, Group Chief Operating Officer at Lloyds Banking Group, said: “AI is already delivering real value for our business, our colleagues and our customers. The progress we’ve made this year shows the scale of the opportunity ahead. By continuing to extend our leadership in AI and scaling the most impactful technologies across the Group, we can unlock new opportunities to better support our customers, strengthen our operations and realise further financial benefits in the years ahead.”

Lloyds Banking Group’s progress on AI has also been recognised externally, with the Group rising 12 places in the Evident AI Global Index last year, the strongest improvement of any UK bank. This follows further industry recognition, including being recognised as ‘Outstanding’ in Euromoney’s Global Digital Banking Report, highlighting how the Group’s approach to technology is helping support customers more effectively across the UK.

FF NEWS TAKE: This announcement decisively moves the needle by attaching a clear, verifiable revenue value to AI adoption—a critical metric for the C-suite globally. The immediate focus should turn to the 2026 launch of the new AI-powered financial assistant. This assistant is the ultimate test of the Group’s strategy, moving Generative AI beyond support into proactive, personalized guidance on complex areas like savings and investments. Success here will demonstrate that AI can drive net new business value, pressuring competing banks to prioritize the development of their own customer-facing intelligent agents.