The UK financial services sector is facing its biggest technology skills shortage in over 15 years, driven by rapid advances in AI. Rhodri Hughes, Executive Director for Financial Services at Harvey Nash, featured in a recent City AM article, warns that this growing AI talent gap threatens the UK’s status as a leading global financial hub.
Our 2025 Digital Leadership Report reveals a 260% (up from seventh to the most scarce technology skill) in just 18 months. Despite 89% of financial services tech leaders investing in AI, more than doubling from the previous year, over half are not providing essential AI training, widening the skills gap.
Larger firms with budgets exceeding $500 million report better returns on AI investments, but intense competition for AI talent is leading financial institutions to recruit heavily from big tech companies. At the same time, internal software engineers are increasingly seeking AI experience to advance their careers.
Looking ahead, Rhodri predicts that by 2030, UK banks will have smaller but more specialised tech teams adept at working alongside AI tools.
However, as Rhodri explains, regulatory frameworks are struggling to keep pace, with few firms feeling ready for upcoming AI regulations, a gap Hughes highlights as a critical concern.
Read the full City AM article featuring Rhodri Hughes here.
