KPMG has noted that UK financial services companies are preparing for a notable expansion in their workforce this year, with artificial intelligence and advanced technology skills emerging as the primary drivers of recruitment. This optimistic shift is detailed in KPMG’s latest UK Financial Services Sentiment Survey, which highlights a sector ready to rebound after a period of contraction.
The quarterly survey, based on responses from 150 senior leaders across the industry, indicates that 55 per cent of firms intend to increase staff numbers during 2026.
Confidence levels are particularly high, with more than 80 per cent of respondents expressing assurance that they will be able to secure the specialised talent required in the opening three months of the year.
KPMG pointed out that this marks a significant turnaround in 2026 from this past year, which ranked among the weakest hiring periods for the sector since the 2008-2009 global financial crisis—the only comparable downturn occurring during the 2020 pandemic when vacancies also declined sharply.
Recruitment efforts are expected to concentrate heavily on technology-oriented roles.
Among organisations planning headcount growth, 52 per cent anticipate directing their hiring towards technology positions.
Demand for AI capabilities stands out as the leading priority, identified by 44 per cent of firms seeking external candidates and 43 per cent focusing on internal development.
For those expanding at board level, 57 per cent cite AI expertise as their top acquisition target. When asked about the main influences on hiring strategies, the UK’s broader economic outlook topped the list at 31 per cent, closely followed by AI development initiatives at 25 per cent.
Senior management positions, especially at managing director level, represent the highest recruitment priority, while investment in apprenticeships and early-career programs has fallen dramatically—only 4 per cent of leaders now view them as a focus, compared with 20 per cent in late 2024.
This suggests that broader workforce development and entry-level opportunities are taking a back seat in some areas.
Karim Haji, Global and UK Head of Financial Services at KPMG, welcomed the findings as a positive signal amid a softening jobs market overall. He noted that the sector already supports one in every 13 jobs nationwide and that its expansion plans offer reassurance.
Haji emphasised that AI is moving beyond a simple efficiency tool to actively reshape talent strategies.
“AI is creating demand for human skills,” he observed, adding that diversity will be essential for building responsible technology.
He pointed to the growing number of ethical AI leadership roles being filled by professionals from behavioral science, law, and psychology rather than purely technical backgrounds, helping organizations create systems that are not only effective but also secure and trustworthy.
Haji cautioned, however, that an excessive focus on senior technology hires could limit long-term resilience, stressing the need for broader skill sets, adaptability, and sustainable talent pipelines in an increasingly unpredictable environment.
The survey also reveals a clear preference for technology when strengthening organizational resilience against geopolitical tensions, cyber risks, and financial crime.
Industry professionals plan to allocate resources as follows: 43 per cent to general technology upgrades, 41 per cent to AI applications, 36 per cent to cyber defenses, and 35 per cent to data management and security. By contrast, only 24 per cent intend to boost investment in people.
A similar pattern appears in fraud and financial crime prevention, where 68 per cent prioritize technological solutions, 20 per cent focus on staff awareness training, and just 9 per cent emphasize specialist human expertise.
This approach positions automation and analytics as the first line of defence, with human roles largely confined to oversight.
Haji noted that while many firms already maintain strong technical risk teams, over-reliance on systems could create vulnerabilities unless balanced by continued emphasis on human judgement and governance. The research, conducted online by Opinium, underscores a sector that is leveraging innovation to drive growth while navigating the complexities of an evolving technological environment.
