The majority of IT decision-makers working in the UK’s finance and banking sector (57%) say uncertainty over future AI regulation is delaying their investment decisions. This is according to new research from Telehouse Europe, a leading global data centre service provider. The research comes a year on from the introduction of the EU’s AI Act, which is yet to be replicated in the UK.
The UK’s approach to governing AI use, which is geared towards enabling innovation rather than limitation, is not yet succeeding due to clashing frameworks globally. 98% of UK finance and banking firms say regulatory approvals have already delayed tech rollouts, and two-thirds say conflicting global policies around AI is one of the biggest operational challenges they currently face in staying compliant.
The research highlights the impact this is having on UK jobs in finance. Concerningly, 37% of organisations have already outsourced, or are planning to outsource tech roles overseas or cut them all together. This is due to the cost and complexity of managing AI regulations, whilst a further 24% of firms are still considering cuts to balance budgets.
In addition to regulatory headaches, the lack of domestic AI skills needs urgent action. Investment in nationwide upskilling and AI-specific apprenticeship schemes should be Government’s priority if it wants to stay competitive with other nations, according to the sector.
Mark Pestridge, Executive Vice President and General Manager, Telehouse Europe, said: “The UK’s financial sector has long set the global standard for innovation, but the research is clear: regulatory uncertainty will threaten that position.”
Pestridge continues: “Equally, we need to build the right skills base to ensure innovation stays onshore. This has been a concern within the tech sector for a long time now. Our physical infrastructure is in reasonable shape – albeit we are battling against planning and energy constraints, and the number of data centres opening will enable next-generation technology, but we must have clarity over AI governance, and a strategy to enhance AI education.”