The impact of AI on organisations and their teams
I work with businesses across every aspect of the industry, and one thing is clear, AI is transforming the sector at a rate we’ve never seen before.
Our research supports this, demonstrating that increasing digitisation is the single biggest change taking place in financial organisations across the world. And it’s touching every aspect of the sector, from accelerating the evolution of fintechs, through to altering the role financial advisors play in the lives of their clients.
These changes are inevitably putting pressure on workforces, with many facing major changes, not only to the company they work for, but also to their day-to-day roles. Yet, many organisations are failing to provide teams with the support they need to understand and adapt to these monumental shifts. In fact, our 2025 Capability for Change report research, drawn from more than 500 global change professionals, found that 44% of organisations are investing more in AI software than in training people to manage it.
Put simply, technology is being deployed in the finance industry faster than the people who are expected to use it are being prepared. If this continues to go unaddressed, organisations’ ability to adapt, innovate, and evolve will quickly fracture, and so too will their competitive edge.
The gap
The positive news is that I rarely see major issues with teams grasping new technology. Finance professionals are smart, forward-looking, and – in the case of entry-level staff – often digital natives. Instead, the challenge I see over and over again is how leaders are communicating change.
Our research found that 46% of leaders focus on explaining why change is necessary but entirely fail to communicate how it will be achieved.
Of course, understanding the reason behind a change is an essential first step, but the importance of teams being bought into how and why it will be achieved cannot be underestimated. If leaders cannot explain how AI is changing the organisation and what it really means in terms that connect with their people’s day-to-day experience, employees hesitate. And in this industry, hesitation is costly. It slows innovation at a time whencommercial advantage comes from speed.
A clear, well-communicated vision is also essential for keeping other stakeholders, includingregulators, on board with changes. When I worked as a regulatory liaison for a global investment bank, I found that my willingness to explain how the organisation was innovating was fundamental to building productive relationships. If a finance firm wants positive, two-way regulatory engagement, it must be prepared to explain what it is doing clearly and in a way that resonates with them.
The challenge facing leaders
There are several reasons why leaders struggle to communicate changes in a way that effectively galvanises teams. Not least because of a lack of experience and training themselves. Many senior figures in finance will never have experienced change at this scale and pace in their careers before. Our research also shows that under a third (31%) of those in the finance sector have received specialist change management training, despite it becoming such a crucial part of their role.
On top of this, many leaders are, naturally, nervous about the implications of their workforces embracing AI.
These fears tend to be driven by one of two things. The first is values. Professionals, especially those with a long history in the industry, worry that relying on AI might compromise professional judgement or ethical standards in their organisation. The second is more existential. Leaders question whether embracing AI could automate elements of their business or their own role, and, if it does, how this will impact their relevance. In reality, thisshift creates huge opportunities for finance businesses to evolve, grow, and differentiate themselves. However, the short-term uncertainty it brings is understandably unnerving.
On top of this, some leaders worry about the impact that AI adoption can have on team dynamics. More junior team members are often better placed to experiment with AI. They’re digital natives and perform roles that allow them to test-and-learn, making small tweaks to tasks they complete every day. Leaders, however, are often one step removed from this experimentation. This can create the impression that teams are subject matter experts before their managers, which can feel uncomfortable.
But, while these concerns are valid, failing to act poses a far greater risk. Organisations that adopt AI strategically gain efficiency, deeper client insights, and the ability to elevate their human expertise. Those who do not risk losing influence, credibility, and relevance in an increasingly competitive market.
The solution
With so much at stake, professionals at every level of organisations must be equipped and motivated to embrace the opportunities AI presents to the industry.
This starts at the top. Financial institutions need leaders who can join the dots and tell stories that link the strategic ambition of the business to what their people are experiencing at a tactical level.
The ability to narrate the journey is an essential skill. If leaders are coached to explain how AI shapes processes in a cohesive story, this has a knock-on effect on employee confidence,as well as strengthening credibility with all stakeholders.
It’s not the organisations with the most sophisticated technology that will thrive in the future. It’s those whose leaders can bring their people with them, creating a skilled, adaptable, and innovative workforce. This is the missing variable, and it’s entirely achievable for those who are committed to success.
To find out more about how finance professionals are approaching AI adoption and The Capability for Change Report 2025
