The AI for Services 2025 report offers fresh insights into the UK’s innovation landscape within the Professional and Financial Services sectors, drawing from extensive research, stakeholder interviews, and industry surveys. This edition highlights the sector’s strength and diversity through an in-depth analysis of regional clusters, providing a clear picture of its capabilities and growth beyond London. Additionally, the report examines the evolving investor landscape, showcasing increasing interest in technology-driven businesses and the growing appetite for co-investment opportunities.
Key findings
- Sector Size & Growth Potential – The UK’s Professional & Financial Services (PFS) sector contributes over £260bn in GVA (approximately 13% of the UK economy), employing 7 million people across 132,000 organisations. With strong global competitiveness, the sector presents significant opportunities for innovation, investment, and regional expansion beyond London.
- Digital Innovation & Technology Adoption – The UK’s Professional & Financial Services sector is increasingly driven by digital transformation, with key areas of focus including data management, artificial intelligence, cloud computing, and cybersecurity. Adoption of these technologies is seen as crucial for maintaining global competitiveness.
- Investment & Regional Growth – Investors are shifting towards businesses with clear paths to profitability, with a growing appetite for co-investment and collaboration. While London remains dominant, regional ecosystems are expanding, though challenges such as funding access and supportive policies persist.
- Collaboration & Future Opportunities – Greater cross-sector and regional collaboration is needed to drive innovation, enhance digital literacy, and improve resilience. Regulatory adaptation, investment in skills, and leveraging emerging technologies will be key to ensuring the sector’s long-term success and societal impact.
Survey response
- Strong Confidence in Digital Adoption – 80% of industry professionals expect a substantial acceleration in digital technology adoption over the next five years, with 82% believing it is crucial for maintaining competitiveness.
- Investment & Profitability Focus – 77% anticipate increased investment in the sector, but investors are prioritising businesses with clear paths to profitability and efficiency rather than rapid growth.
- Regional Challenges & Opportunities – 74% of surveyed stakeholders identified funding constraints as a major challenge for regional PFS firms, emphasising the need for increased financial backing outside the capital.
This report was commissioned by AI for Services with funding from Innovate UK. AI for Services is part of UKRI Next Generation Professional and Financial Services programme. The network counts more than 1,500 leading businesses, researchers, firms and investors coming together to support the transformation of the UK PFS sector and its global leadership position and demonstrate the opportunity and benefits of undertaking research and development. It also acts as a network of networks to share learnings, discuss common challenges and further encourage innovation transfer. Join the network here.