US and UK Payments Firms Racing to Deploy AI Without Modernizing Financial Infrastructure

WHY THIS MATTERS: The rapid ascent of artificial intelligence within the payments sector has shifted from a speculative trend to near-universal deployment, with almost every firm now claiming some level of AI capability. Yet, beneath this veneer of innovation lies a persistent, structural bottleneck. The industry is currently trapped in a cycle of implementing AI as a series of isolated point solutions while ignoring the fractured, legacy data environments that underpin their core financial operations. This mismatch creates a deceptive illusion of progress; firms are rushing to adopt cutting-edge tools without first modernizing the underlying architecture required to feed them. True return on investment in the age of intelligent automation demands more than just sophisticated software—it requires a holistic overhaul of data pipelines to eliminate fragmentation. For leadership, the true differentiator is no longer “who uses AI,” but who possesses the structural maturity to leverage it effectively across the entire enterprise.

96% of payments firms now use AI in some capacity, but most are still operating on fragmented financial infrastructure that limits ROI and increases operational risk, according to AutoRek, a leading provider of automated reconciliation and financial controls solutions, in its 2026 Future of Payments Operations report.

The report, based on interviews with 250 senior finance leaders across the U.S. and U.K., found that AI adoption among payments firms rose from 89% in 2025 to 96% in 2026. However, the operational barriers preventing firms from fully scaling AI – including disconnected data systems, legacy infrastructure and compliance concerns – remained largely unchanged year over year.

The findings also show how quickly AI moved from prediction to reality. In 2025, 39% of payments firms named AI as the biggest change coming to their business over the following two years. 12 months on, near-universal adoption shows that change has already arrived.

 While 30% of firms use AI widely across financial operations, up from 22% in 2025, 61% cite data security and regulatory risk as their top concern, 50% point to implementation costs and 46% say legacy system integration remains a major obstacle.

“The year-over-year comparison shows adoption climbed sharply while the underlying barriers held in place. Payments firms are running AI on the same fragmented data environments they had 12 months ago and the firms struggling most are the ones treating AI as a series of point solutions rather than building it into the operational foundations underneath,” said Nick Botha, VP of Payments and Retail Banking at AutoRek. “Firms that resolve the integration question in 2026 will be the ones realizing returns on the AI investments they have already made and the ones whose customers feel the difference.”

Data, cost and legacy systems are the top barriers to AI ROI

Despite rapid AI adoption, the operational barriers preventing payments firms from realizing meaningful returns on those investments have remained largely unchanged year over year. Internal legacy systems remain the leading source of data fragmentation across payments operations, ranking number one in both the 2025 and 2026 reports.

61% of respondents cited data security and regulatory risk as their top concern, while 50% pointed to implementation and maintenance costs and 46% identified legacy system integration as a major obstacle. The findings suggest many firms are deploying AI faster than they are modernizing the financial infrastructure and data environments needed to support it effectively.

“The year-over-year comparison shows adoption climbed sharply while the underlying barriers held in place. Payments firms are running AI on the same fragmented data environments they had 12 months ago, and operations teams are absorbing the consequences in increased reconciliation work, regulatory exposure and integration costs. Firms that resolve those barriers in 2026 will be the ones realizing returns on the AI investments they have already made,” noted Botha.

For more information, read the full report here.

FF NEWS TAKE: This report serves as a reality check for the fintech sector: AI is not a magic wand for broken infrastructure. While widespread adoption is notable, it does little to move the needle if the back-office remains shackled by technical debt. Looking ahead, we expect a market bifurcation: firms that prioritize infrastructure modernization over quick-fix automation will dominate, while laggards will find themselves struggling with spiraling compliance costs and integration fatigue.

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