Regulatory Shifts: A Tale of Two Approaches
This quarter has presented its fair share of challenges, from policy shifts in the U.S. to the FCA and PRA’s decision not to proceed with diversity and inclusion regulations for financial services firms. In contrast, the Solicitors Regulation Authority (SRA) has mandated diversity reporting for nearly a decade. As highlighted in our response to the industrial strategy green paper the legal sector continues to grow at pace and consistently ranks high on the social mobility employee index—proving that oversight can foster equitable growth.
At a time when regulatory protection from overseas encroachment feels more critical than ever, I’ve been reassured by the commitment from our Members and Partners. Career progression based on merit, not polish, has always been our mantra—and it’s difficult to disagree with that, no matter where you are in the world.
AI Adoption: Bridging the Readiness Gap
I was pleased to see the City Minister reaffirm this week that ‘inclusive’ economic growth remains a priority. Our latest report, in partnership with our Founding Partner Accenture, underscores a compelling reality: businesses that successfully integrate AI report both higher employee satisfaction and stronger financial performance.
However, while 83% of financial services firms are piloting generative AI, only 8% have successfully scaled it across their organisations. One of the biggest barriers? A workforce that is not fully AI-ready. Access to AI tools and training remains uneven, particularly among employees from lower socio-economic backgrounds—exacerbating existing inequalities. If we want to maximise growth and productivity, we must avoid a two-tier AI transition.
Driving Meaningful Change: From Insight to Action
Engaging with C-suite leaders this quarter, alongside our Chair and former Lord Mayor Vincent Keaveny, has been an inspiring experience. Two key insights continue to resonate:
-
Small, everyday nudges—as explored in our VOICE report with the London School of Economics and HSBC.
-
Strategic interventions that drive inclusion across diversity characteristics—as highlighted in our joint report with EY and other initiatives, including FTSE Women Leaders and the Parker Review.
Driving meaningful change is never easy, but through collaboration and persistence, business leaders can ensure that progress reaches everyone.
