Lloyds Banking Group has joined forces with the University of Glasgow to launch a 4-year research collab that is sharply focused on agentic artificial intelligence. Announced recently, the program aims to carefully investigate how advanced AI tools—specifically those powered by large language models or LLMs—can streamline the dedicated roles of software and data engineers.
The initiative will enable Lloyds Banking Group to integrate agentic AI systems across its engineering operations on a large scale.
In addition to this, academics will gain rare access to observe and analyze a comprehensive organizational shift in a live, progressive environment.
Every three months, teams of engineers based in Bristol, Manchester, and Hyderabad will pair with these AI counterparts to tackle varied assignments. Researchers will track measurable improvements in both the quality of outputs and the pace of project completion.
As insights accumulate, Lloyds plans to scale various approaches first to its broader data divisions and, over time, to every software and data engineering group within the organization.
This practical rollout reflects the bank’s commitment to staying at the forefront of digital banking.
As the United Kingdom’s largest digital bank, Lloyds serves 28 million customers and continues to pour resources into developing fresh software solutions, modern services, and comprehensive upskilling programs for its workforce.
To support the academic dimension, the partnership will fund three new research positions at the University of Glasgow: a PhD studentship, a Masters by Research degree, and a post-doctoral research associate role.
These researchers will work directly alongside Lloyds’ engineering staff, bridging theory and real-world application.
Leading the university’s contribution are Dr Tim Storer and Dr Peggy Gregory from the School of Computing Science.
Dr Storer highlighted the rapid evolution of agentic AI in software development, noting its ability to automate routine duties so that human engineers can concentrate on more complex, strategic challenges.
He emphasized that while the technology holds immense promise, few large-scale studies have examined its effective deployment in various corporations.
“This collaboration represents a … chance to generate robust evidence that can shape both industry practices and broader policy,” he added.
On the Lloyds side, the project is spearheaded by Dr Shane Montague, Head of Research Engineering, under the executive guidance of Professor Andrew McDonald, who oversees Enterprise Data Provisioning and Technology Platforms.
Dr Montague stressed that the bank’s core purpose—to support Britain’s prosperity—drives its push for evidence-based innovation.
He emphasized:
“By studying actual day-to-day engineering workflows, we can identify what truly delivers value and apply agentic AI in ways that enhance customer experiences safely and at scale.”
Beyond internal advancements, the partners intend to release a series of research papers and practical guidelines.
These resources will offer organizations of any size clear strategies for embedding AI into software and data product lifecycles. The joint initiative is expected to positively influence national standards and accelerate responsible AI adoption across the UK economy.