Complex digital infrastructure slows financial firms' AI

Colt Technology Services has published research suggesting that digital infrastructure complexity is hindering growth and innovation at financial services firms. The findings are based on a survey of 150 financial services companies in Europe and Japan.

The study found that 56% of financial organisations surveyed viewed digital infrastructure complexity as a barrier to realising the full benefits of artificial intelligence at scale. Another 67% said businesses had missed AI opportunities because of limitations in their digital infrastructure.

The research forms part of a wider study of 600 Chief Executive Officers, Chief Information Officers, Chief Technology Officers and IT Directors at large organisations across the UK, France, Germany, the Netherlands and Japan. It examined networks, security, communications and cloud services, and how infrastructure issues affect business performance beyond IT departments.

For financial services groups, the survey points to a direct commercial impact. Some 61% of respondents said businesses were losing revenue each year because their digital infrastructure could not keep up with business ambition.

When asked to quantify the impact, respondents estimated that the average value at stake during periods of delay was about GBP £138,600 per week. They also said an average of 10 innovation initiatives had failed to progress over the past 12 months, with an estimated annual value of GBP £419,161.

Operational drag

Complex digital infrastructure slowed critical business operations at financial firms by the equivalent of seven weeks over the previous year, according to the study. It also found that 49% of respondents had seen increased operational or support costs, while 39% reported slower-than-expected performance of critical systems.

Respondents also reported delays to strategic projects and compliance work. Among financial services firms, 64% said complexity had delayed entry into a new market or region, or slowed business expansion.

Half said it had delayed their response to a major compliance, regulatory or security requirement. Another 47% said it had held up the completion of an acquisition or divestment integration, while 41% said it had delayed adoption of emerging technologies such as agentic AI.

Sources of complexity

Respondents identified several causes of network complexity. Managing multiple vendors was cited by 65% of financial services participants, while 47% pointed to legacy systems and 38% highlighted security and compliance requirements.

According to the research, those issues translated into internal costs, slower project delivery, higher supplier costs, delayed revenue, and security and compliance risks. The findings suggest that infrastructure design, procurement choices and legacy technology remain closely tied to business execution in the sector.

In the survey, digital infrastructure was defined as networks, security, and cloud or data platforms. That framing places the problem across core operating systems rather than within a single application or business line.

Financial institutions face growing pressure to modernise systems while meeting tighter regulatory obligations and managing cyber risk. The survey indicates that these overlapping demands can create friction when firms try to expand, integrate acquisitions or deploy newer AI tools.

"Many complex enterprise networks have been built over time like LEGO bricks from different generations - compatible in theory, but not designed to form a clean, stable structure together. This complexity is now having a real financial and operational impact, slowing AI adoption and putting future growth at risk," said Laura Farina, Executive Vice President - Enterprise Sales, Colt Technology Services.

The wider study covered organisations in financial services, manufacturing, retail and transport. The financial services segment was highlighted separately because of its regulatory demands and reliance on legacy systems. Colt said the research was intended to assess the strategic effect of infrastructure complexity on organisational growth and progress.

The financial services responses show that infrastructure constraints are not limited to internal IT efficiency. They extend to revenue, compliance timelines, market expansion and the ability to move projects from proposal to implementation.

One of the clearest figures in the survey was the estimate of seven weeks of accumulated delays over a year. Combined with the weekly value at stake reported by respondents, it points to a sizeable cost for firms whose systems are proving difficult to simplify or integrate.