According to KPMG’s latest Venture Pulse report, UK firms secured $5.5bn (£4.1bn) in venture capital investment in Q1 2025 alone – more than Germany and France combined.
This achievement coincides with the EU’s landmark €1.3bn (£1.1bn) commitment to accelerate AI adoption and digital infrastructure.
For capital markets firms operating across the UK and Europe, the message is clear: AI innovation and regulation are converging, and firms must be ready to scale responsibly.
Despite the acceleration of AI adoption in capital markets, firms must still learn how to harness the technology’s ability to process vast amounts of data and execute tasks at speed so employees can focus on higher-value activities.
AI in capital markets meets regulation
The EU’s recently enacted AI Act stresses the need for explainability, risk categorisation, and ethical governance in AI systems. European capital markets firms thus face the dual pressures of keeping pace with AI-driven competition and embedding compliance into every layer of AI deployment….
