London – A new study by ActiveOps, a leading provider of AI-powered Decision Intelligence for service operations, has exposed a troubling trend within the UK financial services sector: decision paralysis is significantly hampering operations due to a lack of real-time data. The report, titled “Ready or Not AI is Here,” highlights the critical challenges faced by operational leaders as they struggle to make timely, data-driven decisions.
According to the research, 90% of operational leaders are not utilising real-time data for critical decision-making. Alarmingly, nearly one-third rely on data that is at least one week old, while 46% express distrust in their current operational data. These issues are exacerbated by inconsistent terms and metrics, further undermining confidence in data-driven decisions.
Kuljit Bawa, Managing Director of EMEIA at ActiveOps, commented on the findings: “It is clear from our research that operations have serious problems with data. Many have invested heavily in process reengineering and automation to drive efficiencies and support digitisation strategies but have failed to address the fundamental data problem. Managing in an environment of spreadsheets, data silos, and decision making by hunch is not tenable. Operations teams can’t achieve their goals if these challenges and barriers remain. For consumers, this translates to continued high costs, slow delivery, and poor customer engagement.”
The research, which surveyed over 800 Chief Operations Officers, Chief Financial Officers, and Senior Heads of Operations across the globe – including the UK, Republic of Ireland, US, Canada, Australia, New Zealand, and South Africa – paints a concerning picture of the current data landscape and AI adoption within financial services operations.
Key findings from the report include:
- 90% of operational leaders are not using real-time data for critical decisions.
- 30% base decisions on data that is at least one week old.
- 85% face significant challenges in extracting insights from operational data.
- 46% do not trust their current operational data.
- 42% experience challenges with inconsistent terms and metrics.
The situation is particularly acute in the UK, where one in three operations leaders in finance report being unable to access the data needed for real-time decisions. Additionally, 41% describe their data as irrelevant, and 46% do not trust it. One of the most significant issues cited is the overwhelming volume of data, with 44% of leaders struggling to manage it effectively.
“Basing critical decisions on insights that are incomplete, inaccurate, and weeks old puts operations on the back foot,” continued Bawa. “In today’s world, where customer demands are so high, the speed of decision-making to drive productivity and efficiencies becomes a competitive advantage. This leads to faster turnaround times, reduced overtime, limited staff burnout, and the avoidance of costly SLA breaches.”
Despite these challenges, there is growing recognition of the potential benefits of accessible, relevant, and real-time data. AI is seen as a key enabler, offering the ability to transform operations through predictive and prescriptive insights.
Bawa concluded: “AI has the potential to transform the world of operations, and confidence from operational leaders seems high. However, data holds the key not only to automate processes but also to support human decision-making via predictive and prescriptive insight in real-time.”
The report underscores the urgency for financial services organisations to embrace new technologies that can provide real-time, accurate data. Those that adapt and flex to integrate AI and other advanced technologies will be better positioned to dominate the market, while those that do not risk being left behind, hampered by decision paralysis and inefficient operations.
As financial services continue to navigate the challenges of the digital age, the ability to make swift, informed decisions will be paramount. The insights from the ActiveOps research serve as a stark reminder of the importance of real-time data and the transformative power of AI in driving operational success and customer satisfaction.