Core Insights - The UK financial services sector is rapidly adopting AI, with 75% of firms utilizing it, a significant increase from 58% in 2022 [1][12] - Despite this growth, consumer confidence in generative AI remains low, with 33% of consumers expressing no trust and 21% having only a little trust [2][3] - There is a notable gap between the pace of AI innovation and consumer comfort, with 38% of consumers believing that banks are innovating too quickly [3] Consumer Trust and Awareness - A FIS survey indicates that 50% of UK consumers feel anxious about generative AI, highlighting a trust gap that banks need to address [2][10] - Awareness of AI technologies is uneven, with 72% of consumers aware of AI chatbots, yet only 43% actively using them [4][7] - The research identifies four consumer segments based on technology adoption speed, with early adopters showing higher awareness and trust in AI [5][7] Perceptions of Risk - Risk perceptions vary significantly among consumer segments, with late adopters expressing greater concerns about security, privacy, and transparency [6][10] - The survey reveals that 48% of consumers are concerned about fraud or identity theft, with higher concerns among late adopters [6][7] Positive Impacts of AI - Consumers recognize AI's benefits in specific areas, with 23% citing fraud detection, 22% for identity verification, and 18% for faster customer service [8][9] - There is a readiness among consumers to embrace AI that enhances security and convenience, but skepticism remains regarding data sharing and autonomous decision-making [8][9] Recommendations for Financial Institutions - Banks are encouraged to not only innovate but also educate consumers about AI technologies to build trust [10] - Clear communication about how AI protects consumer data and enhances their banking experience is essential for fostering confidence [10]