The FTSE 100 outperformed the S&P 500 in 2025, returning 21.5% versus 16.2%, despite containing almost no pure-play artificial intelligence stocks.
While global investors pour money into Nvidia and Microsoft, traditional UK sectors including banking, mining, and pharmaceuticals are generating substantial AI-driven profits without branding themselves as technology companies.
UK banks are deploying AI for fraud detection, algorithmic trading, and risk modelling, reducing operational costs while simultaneously boosting margins across the board.
HSBC screens over one billion transactions monthly for financial crime, using AI that detects two to four times more suspicious activity than traditional methods while cutting false alarms by 60%.
The banking sector now sits at 15-year highs, with financials representing roughly 39% of the FTSE 100 index, reflecting a clear efficiency story driven by AI productivity gains.
AstraZeneca gained 27% in 2025 as the broader healthcare sector benefited from AI-assisted research and development, accelerating clinical trials and drug candidate identification.
GSK recently unveiled a five-year strategic collaboration focused on AI for cancer drug discovery, partnering with Noetik in a $50m spend on cancer AI platforms.
In the mining sector, Anglo American is establishing an AI Centre of Excellence targeting predictive maintenance on haul fleets and processing plants, cutting downtime by up to 75% at some operations.
AI spending across the mining industry is expected to grow from $2.7bn in 2024 to $13.1bn by 2029, reflecting rapid adoption of autonomous drilling and real-time ore optimisation technologies.
Fresnillo (LSE: FRES), the precious metals miner, has shown particularly strong performance, rising approximately 115% over the past year, making it one of the standout beneficiaries among UK-listed mining stocks.
Fresnillo delivered record full-year 2025 results, with revenue rising 30.5% year-on-year to £3.42bn and net profit surging a remarkable 594% to £1.05bn.
Dividends reached 128.92 cents per share, the highest level in the company’s history, reflecting the significant windfall from rising gold and silver prices over the period.
Despite this strong performance, Fresnillo has faced a 20% monthly decline under recent pressure, raising questions about how much of the pullback is tied to precious metals pricing versus AI-related cost dynamics.
The upfront cost of AI investment can drag on short-term profits, and the increasing energy demands of AI infrastructure alongside long-term regulatory uncertainty add additional layers of risk for investors to consider.
However, with a forward price-to-earnings ratio of just 12.3 and a £1.45bn cash position, Fresnillo still appears affordable and retains a promising financial foundation for long-term growth.
The broader takeaway for UK investors is that the domestic market’s AI story is not about technology stocks but about traditional companies using artificial intelligence to boost margins, improve yields, and deliver long-term returns without the volatility of speculative tech plays.