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What is AI literacy and why does it matter?

 

"We believe that a culture of AI literacy is essential for driving innovation and improving our services. It's not just about having a few experts; it's about ensuring that everyone understands AI and can contribute to its application."

Josh Cunningham
Group Head of Data and AI Culture
Published on: 09 April 2025
5 min read

Right now, the digital landscape is changing at an unprecedented rate. Each week, it seems, a new story emerges around the capabilities of Artificial Intelligence (AI) and the opportunities it will likely bring over the coming years and decades. 

Today, though, I want to delve into why AI literacy is not just a technical requirement but a strategic imperative for everyone at Lloyds Banking Group. As we navigate the complexities of the digital age, understanding AI is crucial for driving innovation, enhancing customer experiences and maintaining a competitive edge.

What is AI literacy?

AI literacy is all about understanding the basics of artificial intelligence, how it works, and how it impacts our daily lives. And when we talk about AI literacy, we're looking at a few key areas.

First, it's important to understand AI concepts, which means knowing what AI is, the different types of AI (like machine learning and deep learning), and how these technologies are used in various applications. 

AI literacy also involves thinking critically about these impacts and understanding both the benefits and potential downsides. Finally, using AI tools effectively and responsibly is essential. This could be anything from using a chatbot to help with customer service to leveraging AI in data analysis. In a nutshell, AI literacy is about being informed and comfortable with AI, so you can navigate our increasingly tech-driven world with confidence.

A universal tool for transformation

AI is often perceived as the domain of data scientists and tech enthusiasts. However, its impact extends far beyond the confines of technical departments; AI is revolutionizing every facet of our business, from customer service to marketing, finance, and beyond. It is a universal tool that can enhance efficiency, drive decision-making, and unlock new opportunities.

For instance, in customer service, AI can analyse interactions to provide insights that improve service delivery. In marketing, it helps us understand customer preferences and tailor campaigns more effectively. In finance, AI aids in fraud detection and risk management. The potential applications are vast, and understanding AI and all its facets enables us to harness its full potential.

Breaking down silos

At Lloyds Banking Group, we believe that AI should not be confined to a select group of experts. In fact, we advocate for a business-led approach to AI, where it is integrated into all aspects of our operations, because these tools should be accessible and relevant to everyone, not just those with technical expertise.

This approach breaks down silos and fosters a culture of collaboration and innovation. By promoting AI literacy across the organisation, we ensure that all employees can contribute to and benefit from AI-driven initiatives. This democratization of AI is key to our strategy and success.

"AI literacy is all about understanding the basics of artificial intelligence, how it works, and how it impacts our daily lives."

Our partnership with Cambridge Spark

We've teamed up with Cambridge Spark to boost our AI skills among senior leaders with a unique six-month training programme. The "Leading with AI" course, which involves over 200 of our top leaders, mixes hands-on sessions with virtual masterclasses and real-world projects. Designed with experts from Cambridge University, the initiative is all about speeding up AI-driven innovation across our business and showing our commitment to staying ahead in tech.

This partnership builds on our previous success in training the next generation of data scientists and engineers through an intensive bootcamp for our graduates. The new programme is a big investment in giving our leaders the tools they need to drive our transformation. By boosting AI literacy and strategic skills, we're aiming to keep our edge as industry leaders and promote a culture of forward-thinking leadership.

Reimagining Banking with AI

Rohit Dhawan, Director and Group Head of AI & Advanced Analytics beleives that AI will revolutionise the financial services industry over the coming decade. And the transformation will be broad – impacting everything from customer experience to administrative operations.

Read Rohit's article

Practical Applications: AI in Action at Lloyds

AI literacy is not just about theoretical knowledge; it's about practical application. And the Group have already implemented AI in various areas of our business, yielding impressive results.

In customer service, AI-powered chatbots handle inquiries more efficiently, improving response times and customer satisfaction. In marketing, AI analyses customer data to identify trends and optimise campaigns, resulting in higher engagement and conversion rates. In finance, AI detects fraud and manages risk, enhancing security and building customer trust.

These examples illustrate the tangible benefits of AI and underscore the importance of AI literacy. By understanding AI, then, our employees can leverage its capabilities to drive innovation and improve our services.

The future of AI at Lloyds Banking Group

As we continue to build our AI literacy, we are excited about the future possibilities. We are constantly exploring new ways to leverage AI to enhance our services and drive business growth. Whether it's developing new AI-powered products, enhancing existing services, or finding innovative solutions to complex problems, we are committed to staying at the forefront of AI innovation.

We believe that a culture of AI literacy empowers our employees to think creatively and generate new ideas that can transform our business. With the right knowledge and skills, we can harness the power of AI to achieve our strategic goals and provide exceptional service to our customers.

Embracing the future with AI literacy

In conclusion, AI literacy is not just a technical requirement; it is a strategic imperative for Lloyds Banking Group. By fostering a culture of AI literacy, we can drive innovation, enhance customer experiences, and maintain our competitive edge. AI is the future, and we want to ensure that everyone at Lloyds understands its potential and knows how to use it effectively.

Digital technology Our people

Josh Cunningham
About the author Josh Cunningham

Group Head of Data and AI Culture, Lloyds Banking Group

As Group Head of Data and AI Culture, Josh leads the Data Culture Pillar for the Group – one of 5 strategic pillars of the LBG data strategy. Josh is dedicated to fostering data-driven mindsets and empowering teams to harness the full potential of data through a diverse portfolio of initiatives such as; business-wide data literacy programmes, diverse data talent attraction and innovation & collaboration events.

With a background in data and a passion for talent development, Josh is committed to driving a step-change in how large organisations nurture career development for data roles, drive innovation at scale and leverage insights to shape the future of banking.

Follow Josh on LinkedIn.

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