Artificial intelligence is becoming a crucial part of banks’ strategies – more than half of financial institution leaders worldwide say AI is driving profound changes in how their organizations operate. As many as 70% plan to increase budgets for AI development, with 38% intending to raise spending by more than 20%, according to KPMG’s report “Intelligent Solutions in the Banking Sector.”
Banks most often use AI in lending processes – for example, to assess creditworthiness and analyze risk. Advanced algorithms also help tailor offers and communications to customer needs by analyzing financial data and real-time behaviors. AI is further applied to fraud detection and suspicious transaction monitoring. Another growing area is customer service automation, through chatbots and recommendation systems.
The report shows that banks expect quick financial returns from AI investments. Some 62% want to see tangible benefits, while 68% cite cost reduction as the main goal of AI deployment. At the same time, 70% of institutions feel shareholder pressure to prove that AI generates measurable results.
Already, 66% of respondents reported cost savings thanks to AI adoption. However, only 26% saw revenue growth, and 20% noticed a significant impact on overall financial results.
Banks increasingly view AI not just as a tool to boost efficiency, but as a driver of competitiveness – particularly where speed of decision-making, service personalization, and customer need prediction are key. The mindset is also shifting: experimentation is being replaced by deliberate implementation. Yet to reach the next level of maturity, institutions must tackle structural challenges such as inconsistent data and the need for IT modernization. Industry leaders recognize these barriers but see AI as a path to lasting advantage.
“Trust in artificial intelligence, compliance with regulations, and transparent algorithm performance are just as important today as cost reduction or speed of adaptation. The future of banking lies in AI that supports people and becomes part of the company’s overall strategy – not just an IT department tool,” comments Andrzej Gałkowski, Partner, Head of Banking Advisory and Head of AI at KPMG in Poland and Central & Eastern Europe.
Optimism with caution: barriers remain
Despite optimism, barriers persist. Few banks consider their operational data fully ready for AI applications. Talent shortages are another obstacle – there are limited numbers of professionals who understand AI’s potential, financial sector regulations, and banking processes at the same time. Many institutions also struggle with technological constraints. Outdated IT systems, complex architecture, and inflexible testing environments slow down AI deployment and limit potential benefits.
About the report
The “Intelligent Industries” report series is based on research by KPMG International, combining quantitative and qualitative methods. It included in-depth interviews with technology, regulatory, and business experts, as well as KPMG sector advisors. A survey of 1,390 decision-makers across key markets (Australia, China, Germany, the UK, Canada, France, Japan, and the US) included 163 representatives from the energy sector. The research was complemented by an 18-month project analyzing the business value of generative AI. Together, the findings provide a practical guide for organizations seeking to harness AI effectively.
Source: KPMG Poland – Intelligent Solutions in the Banking Sector
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