The study results – Generative AI in Banking – indicate that the banking sector remains far from indifferent when it comes to the development of new digital tools. 45% of the surveyed financial institutions are already investing in GenAI-based solutions, with 52% planning to do so. The main motivators are improving productivity (78%) and customer service quality (60%), with the greatest expected impact in the sales area related to automation of offering processes (66%). Interestingly though, only 13% of respondents pointed to a possible decrease in human interactions (13%). Banks are most keen on introducing tools that support marketing activities (69%), improve chatbot operation (68%) or support the detection of money laundering (57%). However, the effects of the actions taken will be long-term – 64% of companies predict that their tools using GenAI will appear in 2024, and 9% even 12 months later.
The EY-Parthenon research clearly shows that generative artificial intelligence has already taken root in the banking sector. Already, 45% of financial institutions have invested in GenAI-based solutions, and 52% plan to or are very interested in learning more about this technology. Larger banks take the lead – among the group with deposit amounts exceeding 500 billion dollars, 60% have already made investments. In contrast, among banks with deposits under 50 billion dollars, this indicator is over twice as small (28%). Each such crucial decision starts with assembling the right personnel, thus it is unsurprising that dedicated teams have already been formed in 81% of banks.
The main motivators for implementing tools based on generative artificial intelligence are increasing productivity (78%), improving customer experiences (60%), reducing costs (59%), and distinguishing themselves from competition (51%). At the same time, improving the efficiency of bank advisers through automation of creating dedicated sales brochures (66%) topped the areas where respondents believe GenAI can have the greatest impact in performing tasks. Notably, only 13% of the surveyed experts believe this technology will reduce interpersonal interactions.
At the same time, only 63% of banks claim to be adequately prepared in the fields of technology, safety standards, and human resources for implementing GenAI tools. Therefore, it is not surprising that in terms of barriers, concerns about security and privacy of data take first place. As a result, banks approach the introduction of dedicated GenAI tools with great caution. Only 27% incorporated them in 2023, another 64% will do so in 2024, and 9% will do in 2025.
The study indicates that at this stage of implementation, GenAI’s impact on employees will be limited. Over 53% of respondents indicate that in the front office area, fewer than 20% of employed individuals will be directly affected. For back office, this rate is 34%. Over 60% employee engagement is declared by respectively 5% (front office) and 9% (back office) of organizations.
About the study:
The study – “Generative AI in Banking” – was conducted by experts from EY-Parthenon in the second quarter of 2023 on a group of 151 competency leaders from the banking sector in the fields of technology, customer service, marketing, product strategy, and HR. They represented 55% of institutions from both Americas, 28% from the Asia-Pacific region, 13% from Europe, and 4% from other parts of the world.
