Lloyds and University of Glasgow Launch Four-Year Study on Agentic AI in Software Engineering

Lloyds Banking Group has teamed up with the University of Glasgow to kick off a four-year research programme exploring how agentic artificial intelligence can reshape software and data engineering inside large organisations.

The partnership will focus on understanding how AI-powered coding tools—particularly those capable of acting autonomously—can support engineers in their day-to-day work. For Lloyds, which serves around 28 million customers and continues to expand its digital services, the initiative comes at a time of growing investment in both technology and workforce skills.

Rather than relying on theory alone, the programme is built around real-world experimentation. Engineers across Lloyds’ key hubs in Bristol, Manchester and Hyderabad will regularly work alongside AI systems on a range of development tasks. These quarterly trials are designed to measure whether agentic AI can meaningfully improve the speed and quality of software delivery in a complex enterprise setting.

As the research progresses, any proven approaches will be gradually introduced across wider engineering and data teams within the bank. The goal is to scale AI adoption carefully—ensuring that productivity gains are matched with reliability and responsible use.

The collaboration also reflects a broader effort to bridge the gap between academic research and industry practice. To support this, the University of Glasgow will create three dedicated research roles, including a PhD, a Master of Research and a postdoctoral position. These researchers will work closely with Lloyds’ engineering teams, studying how AI tools perform in real operational environments.

Academics leading the project say there is still limited evidence on how agentic AI can be effectively integrated into large-scale organisations. While the technology shows promise in automating routine coding tasks and freeing engineers to focus on higher-value work, its real impact in enterprise settings remains underexplored.

For Lloyds, the initiative is tied to a wider ambition to modernise its technology capabilities while maintaining strong governance. The bank says it wants to gather clear, evidence-based insights into how AI can enhance engineering workflows without introducing unnecessary risk.

The findings won’t remain internal. Both Lloyds and the University of Glasgow plan to publish research papers and best-practice frameworks as the programme evolves. These outputs are expected to inform not just the financial sector, but also broader discussions around how organisations can adopt AI responsibly at scale.

As agentic AI continues to gain traction, the partnership positions Lloyds among a growing number of enterprises seeking to move beyond experimentation and understand what the technology can actually deliver in real-world conditions.