Financial Industry Far Outpaces Regulators in AI Adoption

The financial industry has long used machine learning in risk management, customer service and operations, with adoption broadening further following the rise of generative AI in 2022. The Cambridge Centre for Alternative Finance at the University of Cambridge Judge Business School said the technology gap between financial firms and regulators could weaken the financial system’s ability to respond promptly to cybersecurity threats, privacy risks and model failures.

The center released its 2026 Global AI in Financial Services Report on April 28, 2026, surveying 628 organizations across 151 jurisdictions. It found that 81% of financial firms had adopted AI and 40% had reached the scaling or transformation stage, compared with just 20% of regulators. Among the 130 regulators surveyed, 48% were still exploring AI or had yet to begin. The report also found that 53% of firms spent less than $100,000 annually on AI, while 48% of respondents cited Adversarial AI as a major concern.