Banking is leading the adoption of Generative AI compared to other industries. And the thing is, 98% of banks already use generative AI, and 90% have a budget to invest in it over the next year. This is highlighted by a new SAS study, “Your journey to a GenAI future: A strategic path to success in banking”.
The report shows that 43% of banks are experimenting with this technology at an enterprise level, and six in ten have developed at least one use case with the help of this technology, the highest number of any sector. In this sense, the benefits that generative AI brings to banking are not just an aspiration, but a reality.
“Generative AI is changing the world of banking in a way previously unimaginable and at dizzying speed. It has positioned itself as a key trend in all industries, but most significantly and relevantly in financial services,” says Alex Kwiatkowski, director of Global Financial Services at SAS. “Among the multiple benefits obtained, we highlight in our study risk management and compliance, where almost 9 out of 10 sector leaders have experienced improvements after implementing this technology.”
Top benefits to biggest obstacles: Generative AI
The vast majority of banking leaders are seeing improvements in employee experience and satisfaction (90%), risk management and compliance (88%), and time savings and reduced operating costs (85%). They are followed by other benefits such as improved customer satisfaction and retention or greater efficiency in processing large data sets.
Among the benefits obtained with Generative AI, the sector highlights the improvement of employee experience and satisfaction, risk and compliance management, time savings and the reduction of operating costs.
However, as with many investments and deployments of new technologies, there are certain obstacles that worry banking sector managers. Leading the list is the protection of privacy (74%) and security (71%) of your data and that of your clients. Implementation challenges follow, with more than half saying that the use of public and private data sets is a barrier to incorporating generative AI. Additionally, 49% say they face challenges in taking generative artificial intelligence from theory to practical application.
The correct governance and regulation of technology is also a concern for the sector. Although 58% of banks say their frameworks are under development, only 6% consider their current governance framework to be well established. In this sense, 30% admit that technological limitations are their biggest obstacle to implementing effective governance, and another 30% pointed out the lack of transparency and accountability.
