AI’s double-edged sword: Boosting finance, widening skills divide

AI is not just transforming industries, it’s redefining who drives them.

Nowhere is this transformation more evident than in financial services, where AI is solving inefficiencies, streamlining fraud detection and redefining customer experiences. Yet as AI adoption accelerates, so does a critical challenge: the widening digital skills gap.

At a recent House of Commons event hosted by Code First Girls in collaboration with HM Treasury and the Women in Finance Charter, financial leaders gathered to discuss AI’s role and the pressing need for ethical implementation and workforce transformation. The key takeaway was clear: AI is not just changing what we do, but who gets to do it.

The challenge is not just keeping pace but ensuring that AI is a force for inclusion. It presents an opportunity to create a financial system truly representative of the diverse customer base it serves.

AI, gender parity, and workforce diversity

One of the most urgent discussions at the event was around gender parity in financial services. Emma Reynolds, economic secretary to the Treasury, warned that at the current pace it may not be achieved until 2038 – an unacceptable timeline given AI’s potential to open new leadership opportunities for women.

At Code First Girls, we see first-hand how AI can either be a catalyst for progress or a tool that reinforces existing inequalities. AI-powered hiring tools and credit-scoring models have already demonstrated how bias in data can lead to real-world discrimination.

Representation is critical for the development of ethical AI but only 22 per cent of people working in AI and data science are women. Without intervention these biases will persist, deepening disparities in career progression, pay equity and leadership opportunities.

We need urgent investment in AI upskilling programmes to support underrepresented groups. Code First Girls’ AI conversion courses have helped to diversify the AI pipeline, but only at the top. Government should invest and build on such initiatives to ensure diversity throughout the education pipeline.

This is not just about fairness; it is about ensuring AI teams are as diverse as the populations they serve. We need more women, more diverse voices and more inclusive leadership shaping the future of AI.

Skills needs changing fast

AI is predicted to add £35 billion to the financial and professional services sector over the next five years. This rapid expansion presents opportunity and challenge. AI will create thousands of new roles but risks leaving behind those lacking the necessary digital skills to transition into these jobs. Indeed, skills needs are changing so rapidly that flexible training methods and continuous learning are imperative.

In a recent PwC survey, 69 per cent of global CEOs expected AI to require most of their workforce to develop new skills but businesses are not moving fast enough to bridge this gap.

At Code First Girls, we see how targeted AI education programmes open doors to new careers, particularly for women entering the tech industry. The challenge is scaling these efforts and ensuring businesses prioritise ongoing reskilling as part of their AI adoption strategies.

Ethical AI adoption

Beyond skills development, ethical AI implementation must be at the top of the agenda. AI should enhance trust in financial services, not erode it. The risks of biased data models that disproportionately disadvantage minorities, if left unchecked, will undermine public confidence in AI-driven decision-making.

Businesses need to implement rigorous bias testing, ensure transparency in AI-driven decisions and foster diverse and technically skilled teams to oversee AI development.

The adoption of AI is not solely the responsibility of data scientists and engineers. As Skills England chair Phil Smith recently pointed out, AI innovation must be a collective effort involving leadership, compliance teams, policymakers and frontline employees.

At Code First Girls, we are working to close the digital skills gap by providing AI upskilling opportunities that are accessible and inclusive. Through structured training programmes, mentorship initiatives and partnerships with businesses and policymakers, we are ensuring AI is not just a tool for the few but an opportunity for the many.

The time for action is now. By prioritising inclusive AI education, fostering diversity and embedding ethical principles in AI deployment, we can ensure AI is a force for progress, not division and disadvantage.