At FTT AI Transformation in June, Xiang Fan, Director of Transformation at NatWest, shared a perspective on AI transformation that goes well beyond technology. With experience leading investment programmes across operations, front office and risk management, Xiang has seen first-hand that successful transformation is rarely about introducing a new tool and hoping for the best.

When asked what changes first, strategy, mindset or culture, her answer was simple: all three. Rather than moving in a straight line, they form an ecosystem, constantly influencing one another. Strategy can shift the direction, mindset changes how people approach the journey, and culture evolves as those changes take hold.

For Xiang, the same principle applies to the relationship between innovation and compliance. Instead of seeing compliance as something that comes in at the end of an innovation process, organisations need to bring risk and compliance teams into the conversation much earlier. This means involving them when an AI use case is still an idea, asking whether it is useful, ethical and compliant before development gets too far. It is a shift from seeing compliance as a barrier, to recognising its role in creating the conditions for responsible innovation. Xiang drew a parallel with aviation, where regulation and risk management ultimately helped create an environment in which innovation could scale safely and earn greater trust.

Perhaps most importantly, Xiang believes leaders need to stop waiting for all the answers. With AI evolving so quickly, certainty is often impossible, making controlled experimentation and strong governance essential. She also cautioned against treating AI transformation as simply a technology project or expecting AI to solve every business problem. The bigger opportunity is to rethink how the business itself operates and ask what could be done differently with AI at the core. For Xiang, transformation is not about forcing AI into the existing model. It is about having the confidence to reimagine the model itself.

What does that look like in practice? Watch the full interview with Xiang Fan to hear her take on AI, leadership, compliance and what organisations need to stop doing if they want to keep up.