AI skills, unconscious bias and pay gap holding back gender equality

The Scottish Financial Enterprise Gender Equality Network survey, carried out earlier this year, asked almost 300 individuals in financial and professional services for their views and experiences of issues around gender equality.

And their responses suggested that a gap in the uptake of AI skills and hybrid working could also be barriers to improving gender equality.

The survey found that overall there had been significant progress in bringing gender equality to Scotland’s financial services, with more women now in visible senior roles, flexible working more widespread, and more organisations putting in place initiatives to support women’s progress.

That progress is uneven, however, with respondents identifying ongoing challenges around unconscious bias, access to networks, gender pay gap, work life balance and representation at the most senior levels.

Confidence and impostor syndrome were reported as significant barriers to career progression, alongside concerns about access to sponsorship and mentorship.

The report highlighted research around imposter syndrome that consistently showed women were less likely to apply for promotions unless they met nearly every criterion, and were more likely to attribute success to team effort or luck. In an industry that rewards visible confidence and self-promotion, the survey warned, this could lead to fewer assignments, slower progression and was a key factor in holding back capable women.

It also suggested that hybrid working could have a negative effect, with ‘proximity bias’ favouring those who choose the office more often, meaning women, who frequently balanced work with care responsibilities, risked becoming less visible.

Another risk identified was around AI upskilling, with surveys suggesting women are adopting generative AI tools at significantly lower rates than men. In a sector rapidly integrating AI, this gap could translate into a skills divide, further widening the gender gap.

Writing exclusively in The Scotsman today, Scottish Financial Enterprise CEO Sandy Begbie said that despite huge progress, the “journey toward true equity is far from complete”, adding that “Systemic hurdles - including unconscious bias, persistent gender pay gaps, and the ongoing challenge of balancing family life and caring responsibilities with career advancement - continue to hinder female talent from progressing into key decision-making positions.”

Across respondents, 95% said their employer offered hybrid working, 67% had access to reduced or part-time hours and 32% had access to job-sharing arrangements.

Asked about the area which had seen the greatest improvement in terms of gender equality, 40% said leadership roles, 24% said hiring practices and 19% said work-life balance. It found that 11% felt that professional development opportunities had shown the most growth, while just 6% felt that pay equality had shown the most improvement.

The report recommended that the next phase of progress should focus on making career progression more transparent and objective, with firms urged to ensure that promotion criteria are ‘clear, consistently applied and based on demonstrable performance and potential’.

In addition, recruitment and promotion processes should be structured to minimise the influence of “subjective judgements”, while access to assignments, sponsorship, mentoring and senior networks should be monitored to ensure that opportunities are distributed fairly.

Emma Noble, Chair of the Scottish Executive Committee at Lloyds Banking Group and a Board Member at Scottish Financial Enterprise, said: “I have seen great strides being made in terms of advancing gender equality during my own career and I’m proud to work for a company where inclusion is considered part of our DNA. Inclusion isn’t just about doing the right thing; it’s about driving performance, innovation, and accountability.

“Overall, it is clear that our industry has made great progress, but we must ensure that we maintain a focus and do even more. It is fantastic to see Scottish Financial Enterprise leading the way on this issue both through the publication of this report and more widely through the initiatives that Sandy and the team are driving. When industry comes together and pulls in the same direction, it can achieve so much.”