UK financial services boardrooms are in the process of pivoting to handle the rise of artificial intelligence, with 52% of new directors appointed in the past year bringing technology expertise—up from 36% previously.

The news comes in new research, from professional services firm EY, looking at the background of directors appointed to financial services firms in the last 12 months.

According to EY, the results show that boards are gearing up to handle the integration of new technological developments.

Martina Keane, EY’s UK & Ireland financial services leader, says the results demonstrate that IT skills and experience in the boardroom have switched from “nice to have” to “strategically critical”.

“In the AI era,” says Keane, “data and digital infrastructure are key to competitive advantage. Directors with hands-on tech experience are no longer optional—they’re essential for sustainable growth and ethical governance.”

The insurance sector leads the charge, with 67% of new appointees now tech-skilled, more than double last year’s figure. Banking and asset management follow, though at a slower pace. UK firms are leading Europe, where only 35% of new directors have tech backgrounds.

Board diversity

Women now make up 62% of new tech-skilled board appointees, improving the gender balance among tech-experienced directors to 45% female. This diversity, EY says, brings broader perspectives, helping firms navigate the challenges of digital transformation, AI adoption and the governance implications.

Despite the enthusiasm for boardroom tech skills, 52% of UK financial leaders worry their risk management strategies aren’t robust enough for AI’s challenges. Many are responding by investing in risk assessments and employee training to build skills and awareness around emerging technologies.

Preetham Peddanagari, EY’s UK financial services technology consulting leader, says: “Technology is now a boardroom priority. The focus must shift to execution—ensuring secure data, responsible AI deployment, and scalable innovation that benefits customers and shareholders.”

C-suite experience remains the top requirement for new directors, but tech expertise now overshadows corporate finance, accountancy, and sustainability, according to the survey.

The transformation underscores a broader trend of boardrooms gearing up to exploit and supervise the use of AI, including generative AI (genAI), and data analytics, a move rapidly redefining financial services.

AI on the agenda

In a special webinar hosted by Board Agenda, experts said work introducing artificial intelligence into businesses had to be integrated in boardroom conversations in the same way as climate and ESG.

Patricia Rodrigues Jenner, a non-executive currently serving on the board of Legal & General Assurance, said work on AI should be led by the C-suite members and the board.

“This is business strategy and this needs to be integrated very much like the success of a lot of businesses that integrated climate and ESG in their businesses.”

However, not everyone sees genAI as the disruptive threat often touted in the media.

Julian Birkinshaw, dean of Ivey Business School, writes that only a few industries will truly experience genAI as an “existential threat”.

“The bottom line is that generative AI will end up as a sustaining technology in most industries,” he writes, but adds it doesn’t mean business leaders should be complacent.

“It is important to get up to speed on what the technology can do, and to stay near the leading edge in terms of deployment.”