The complaints watchdog’s annual report and accounts for 2024/2025 detail how it spent £3.5m on delivering its data strategy over the period

This included “designing and building new data warehouses and providing core foundations for the development and strengthening of our artificial intelligence and reporting strategies”.

But the documents also list a “£0.9m impairment of our document identification Al solution due to a change in the technical solution”.

It is thought the writedown relates to the decision to move away from a large technology programme and instead use an off-the-shelf product.

A spokesperson for the FOS says: “We are delivering a once in a generation reform programme to modernise our service and make it fit for today’s economy.

“The continuous delivery of changes and improvements are a key priority and we are delivering at pace.

“We are harnessing the power of available technologies – including AI – to deliver efficiencies and transform our operations, allowing us to become a more agile organisation and focus our judgment where it matters most.”