Ernst & Young (EY US) released its 2023 Financial Services GenAI Survey. Nearly all (99%) of the financial services leaders surveyed reported that their organisations were deploying Artificial Intelligence (AI) in some manner, and all respondents said they are either already using, or planning to use, Generative AI (GenAI) specifically within their organisation.
Amid these universal adoption plans, just over one in five respondents said they are nervous or sceptical about the potential impact of GenAI on their organisation. That same percentage also does not feel confident that their organisations are well-positioned to take advantage of the potential benefits AI might bring. Insurance is ranked highest in the nervous or sceptical category (24%), while banking and capital markets leaders had the lowest levels of scepticism (17%), followed by wealth and asset management (21%).
AI outlook: Optimism now and in the future
The majority of respondents felt positive about AI, with more than half (55%) saying they felt supportive and optimistic about using AI in their organisation. The long-term sentiment is even more optimistic, with 77% of executives viewing GenAI as an overall benefit to the financial services industry in the next five to 10 years. Leaders see a particular opportunity in customer and client experience, with 87% stating that they believe AI can bring improvements to this space.
AI implementation: It’s time to get back to basics
Taking advantage of, and deploying, GenAI is not without its hurdles. When asked about the challenges financial organisations will face in taking advantage of GenAI, leaders ranked the following as top barriers:
· 40% said lack of proper data infrastructure and 35% lack technology infrastructure
· 36% said lack of clear commitment from leadership
· 33% said unclear governance and ethical framework
If organisations truly want to take advantage of AI’s benefits, a major factor in their success will be a better understanding of, and improvements in, their data infrastructure. The survey reflects this, with leaders citing the following as the top three ways AI will benefit the financial services industry:
· 46% said risk reduction from data processing
· 38% said the creation of new offerings and hyper-personalised marketing
· 37% said improving data management process and accuracy
Winning the (AI) talent battle
Implementing AI in financial services will undoubtedly change the way sector leaders learn, serve customers, process data and manage risk. Organisations that act now with investments in training, talent and infrastructure development while putting proper governance and controls in place will reap the benefits that AI offers their industry, continue driving the business case for investment and will likely find themselves to be a step ahead of their peers.