Fintech industry leaders gathered in the House of Lords this week for a special debate on the impact AI will have on the future of the financial services industry.

The debate, chaired by Steven George-Hilley of Centropy PR, saw industry experts explore the challenges posed by the digital skills shortage, with attendees examining new strategies for AI to improve compliance practices and digital transformation.

Arjun Mahajan, Chief of Client Partnerships, AND Digital said: “As businesses navigate difficult trading conditions, the race to adopt AI and deliver effective digital services will remain a key focus for boardrooms in the foreseeable future. For ambitious organisations striving for genuine transformation, it is essential to recognise that empowering people must be at the heart of every AI strategy.

This involves acknowledging the necessity of working with specialised partners who can assist in upskilling the workforce, ensuring that every program is both accountable and effective, ultimately driving long-term productivity.”

Skills expert Garth Newboult, Delivery Director, FDM Group said: “For fast growing financial services firms, the arrival of AI-enabled digital transformation presents a huge opportunity for cracking down on financial crime and speeding up KYC checks.

As banks rush to digitise these core systems, having the specialist skills on hand to enable the smooth implementation of new software as well as expert consultancy around data management is crucial for reducing risk.

There’s no point in investing heavily in the latest tech platforms if staff lack the skills and knowledge to use it effectively. Therefore, industry leaders need to have direct access to a robust talent pipeline of digitally adept, specialist staff to ensure every transformation project produces effective and tangible results.”

Meanwhile Sachin Agrawal, MD, Zoho UK said: “The race to embrace AI brings with it huge opportunities, but also significant challenges when it comes to data security and compliance. As the financial services industry continues to accelerate digital transformation across core systems such as customer service, it’s crucial to recognise the need to work with providers who put privacy at the heart of their offering and have the necessary safeguards in place.

With reducing risk a major priority for banks, we’re also seeing a shift towards working with tried and tested suppliers, who can offer a diverse suite of services, securely.”