Specialist recruiters Marks Sattin say the financial sector is witnessing a surge in interest in artificial intelligence, as companies look to leverage the technology to modernise legacy systems, enhance payment trend analysis, and improve governance and compliance. However, while enthusiasm for AI adoption is high, industry leaders warn that businesses must ensure they are truly AI-ready before implementation.
Ed Hall, Director of Technology at Marks Sattin says that many companies are keen to integrate AI solutions without fully grasping the challenges involved. “AI can be incredibly powerful, but it is only as good as the data it works with,” he says. “If a company’s data is unstructured or inaccurate, then AI-driven processes will fail. Businesses need to be strategic and ensure they have clean data and clear objectives before rushing into AI adoption.”
One of the most immediate applications of AI in the financial sector is upgrading outdated systems. Many big financial institutions and companies, such as banks, are burdened by legacy infrastructures that are inefficient and costly to maintain, as well as being vulnerable to security breaches. AI offers a way to modernise these systems, making them more agile and better suited to the demands of a rapidly evolving market.
Hall continues: “Additionally, AI-driven solutions can enhance cybersecurity by identifying vulnerabilities in outdated systems and proactively addressing them before they can be exploited. The ability to predict system failures and automate troubleshooting further reduces downtime and ensures continuous operations. AI also enables financial firms to integrate with modern cloud-based platforms, ensuring better scalability, security, and regulatory compliance. With AI-driven automation, banks and financial institutions can optimise workflows, allowing employees to focus on higher-value tasks rather than routine maintenance.”
Another key area where AI is making an impact is in detecting and analysing trends in financial data. Payment processing firms, banks, and investment companies are increasingly turning to AI-driven analytics to identify patterns in transactions, spot potential fraud, and optimise payment flows.
“The ability of AI to process vast amounts of data in real time allows firms to gain insights that would be impossible to achieve through traditional methods,” notes Hall. “Governance and compliance are also benefiting from AI’s capabilities. With financial regulations becoming more complex, businesses are under pressure to ensure compliance while maintaining efficiency. AI can help by automating risk assessments, identifying anomalies, and ensuring that internal processes adhere to regulatory standards.”
However, Hall emphasises that AI should not be seen as a replacement for human oversight. “AI can streamline governance and compliance, but there needs to be a balance. Companies must have experienced professionals who can interpret AI-generated insights and make informed decisions,” he says.
Despite its potential, AI’s role in financial services is not without challenges. Businesses must move beyond the excitement of AI and focus on practical implementation. Hall warns that some companies adopt AI for the sake of innovation without fully considering how it aligns with their long-term strategy. “There’s a rush to implement AI without a clear understanding of what it should achieve. Firms need to define their objectives and invest in the right expertise to ensure successful deployment,” he explains.
With AI-related job roles on the rise, businesses are recognising the need to hire specialists such as Heads of AI and data scientists. These experts play a crucial role in ensuring that AI initiatives are executed effectively and ethically. “We’re seeing a surge in requirement for all of these AI driven roles across the board from our financial clients,” says Hall. “And we very much expect this trend to continue into 2025/6 and beyond.
“The financial sector is at a turning point, with AI offering transformative opportunities in legacy system upgrades, financial analytics, and regulatory compliance. However, its success depends on careful planning, high-quality data, and the right expertise. As firms navigate this new landscape, the focus must remain on using AI as a tool to enhance decision-making rather than replace human judgement.”
