UK finance workers embrace AI but fear compliance gaps

June 25, 2025

A new survey from Smarsh has found that while AI tools are rapidly being adopted in UK financial services, many employees remain concerned about oversight and compliance.

Over a third of workers are using tools like ChatGPT or Microsoft 365 Copilot regularly, yet 55% say they’ve had no formal training.

The study, which surveyed 2,000 employees in the financial services and insurance sectors, shows growing reliance on AI without matching governance. Nearly 70% of respondents said they’d feel more confident using AI if outputs were captured and monitored transparently. However, 38% don’t know whether their company tracks AI usage, and 21% say their firm does not.

Smarsh president of enterprise business Tom Padgett said, “AI adoption in financial services has accelerated rapidly, with employees embracing these tools to boost productivity.

“But with innovation comes responsibility. Firms must establish the right guardrails to prevent data leaks and misconduct. The good news is that employees are on board—welcoming a safe, compliant AI environment that builds trust and unlocks long-term growth.”

The report also revealed concerns around the use of AI Agents—automated tools handling customer service and investment tasks. Nearly half of respondents said their firm uses AI Agents in customer communications, and 22% said they’re used for investment decisions. Still, one-third questioned their company’s ability to apply regulations to these tools, and 29% were unsure where sensitive data ends up.

Smarsh vice president of product Paul Taylor warned, “Using public Al tools without controls is digital negligence. You’re effectively feeding your crown jewels into a black box you don’t own, where the data can’t be deleted, and the logic can’t be explained. It’s reckless. Private tools like Microsoft 365 Copilot and ChatGPT Enterprise are a step in the right direction. Still, if companies aren’t actively capturing and auditing usage, they’re not securing innovation- they’re sleepwalking into a compliance nightmare.”

Smarsh is responding to this need by offering AI-enabled compliance tools, such as Capture for Microsoft 365 Copilot and ChatGPT Enterprise. These solutions help firms use AI safely while maintaining compliance.

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