Financial services companies are calling out for clearer and proportionate regulations covering artificial intelligence and ESG – a lack of which is hampering innovation and technological change.

This is amongst the findings of a survey carried out by law firm DLA Piper, in which 58% of respondents cite regulation complexity around technology as a key challenge globally and nearly three quarters (73%) say that current regulations stifle innovation.

The report, Financial Futures: Disruption in Global Financial Services, published today, still reflects a high degree of optimism about future industry growth prospects for the industry, with UK and US organisations reporting the highest confidence (93% and 90% respectively).

Mark Dwyer, global co-chair of the financial services sector group at DLA Piper said: "While our survey shows a high level of optimism within the financial services sector, our research reveals a need for FS organisations to go further in planning around resourcing and regulatory horizon scanning in order to navigate the opportunities that AI and other new technologies offer.

"It is clear that ESG factors are driving changes to activity in financial markets; from financing the enormous capital requirements for transition, to ensuring accurate reporting of environmental, social and governance metrics to facilitate choice for investors and supervision and stress testing by regulators. It is therefore vital that leaders take note of the challenges and opportunities presented by ESG and define a clear plan. Both ESG and innovation will be key to business success long into the future."

DLA Piper commissioned Coleman Parkes Research to canvass views of 800 key decision-makers in global financial services organisations across the EMEA and APAC regions and North America in March and April 2024.


See the next issue of CIR Magazine for more on this report.

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