The UK government has taken a decisive step to future-proof the nation’s financial sector, commissioning the Financial Services Skills Commission (FSSC) to produce a landmark report on the impact of artificial intelligence and other disruptive technologies on the industry’s workforce and skills needs.
The move, announced in a letter dated 5 November 2025 from Lucy Rigby MP, the Economic Secretary to the Treasury, underscores a growing recognition in Whitehall that Britain’s global standing as a financial powerhouse will increasingly depend on its ability to adapt to technological change.
“The UK’s financial centre has long attracted the brightest and best global talent,” Rigby wrote in her letter to Mark Hoban, FSSC Chair, and Claire Tunley, its Chief Executive.
“To continue to attract the right talent and develop the right skills over the coming decade will be fundamental to the government’s aim to ensure the UK is once again the global location of choice for financial services firms to invest, innovate, grow and sell their services throughout the UK and to the world.”
At its core, this commission reflects a strategic push: to ensure that as AI, automation, and data analytics reshape finance, Britain’s workforce is not left behind. The letter formally delivers on a commitment made in the Financial Services Growth and Competitiveness Strategy, published in July 2025, to explore the skills needed for an increasingly digital sector.
What the study will cover
The scope of the research is broad and ambitious. The FSSC will assess:
- The technologies likely to disrupt the financial services sector over the next five to ten years.
- Their effects on business practices, workforce composition, and skills requirements.
- Their impact on productivity, growth potential, and customers — across both national and regional contexts.
- The specific skills financial firms will need to successfully adopt and integrate these technologies.
- A plan for building these skills, setting out practical and costed steps involving employers, educators, government bodies, and training providers.
A cost-benefit analysis will also accompany any proposed measures, reflecting the Treasury’s emphasis on fiscal realism as well as innovation.
The final report is expected by mid-2027, though Rigby left open the possibility of earlier deliverables or interim findings “if it would assist the sector to produce a series of deliverables during its progress.”
In a nod to the collaborative nature of the work, the FSSC will be supported by key industry players, the City of London Corporation, TheCityUK, Lloyds Banking Group, and PwC, each bringing a different vantage point on technology adoption and workforce development.
Rigby also directed the Commission to work closely with Skills England and Treasury officials, ensuring that the findings inform broader national skills policies. “Please pass on my thanks for their contribution to this important work,” she added.
This partnership model highlights a wider shift in government thinking, that addressing the impact of AI on employment requires coordination between industry, academia, and policymakers, rather than isolated initiatives.
Why it matters: Skills as the new competitive edge
Financial services account for around 8% of UK GDP, employing over 2.5 million people and serving as one of the country’s largest export industries. But the rapid adoption of AI-driven decision-making, risk analysis, and customer service tools is changing job profiles across the board, from traders and analysts to compliance officers and support staff.
Research by the World Economic Forum and OECD has shown that digital and analytical skills are among the fastest-growing demands across advanced economies. The Bank of England has also warned that AI could reshape financial risk management, requiring regulators and professionals alike to keep pace with the technology.
By commissioning this study, the Treasury is signaling that it sees human capital — not just regulation or infrastructure, as central to maintaining London’s edge in global finance.
The FSSC’s findings could shape everything from university curricula and professional training to corporate recruitment strategies and regional investment in digital education. The government’s stated goal is to ensure that “a highly-skilled financial services workforce in every region and nation of the UK will drive growth and productivity.”
