A recent study by market researcher Juniper Research indicates a surge in global spending on generative AI by banks, projecting a rise from US$6 billion in 2024 to US$85 billion in 2030. The report foresees major financial institutions embracing generative AI services to enhance user experiences, allowing for more personalized services at a lower cost.
According to the report, generative AI will reshape banking business models, facilitating personalized spending insights and improved customer trend accessibility. Banks are expected to increasingly adopt AI-centric strategies to remain competitive in the dynamic banking landscape.
"Using AI at the heart of operations will enable banks to provide a differentiated and personalized user experience, while reducing costs. By not making AI a priority today, banks risk losing ground to competitors,” said research co-author Nick Maynard.
The report underscores the urgency for banks to invest in GenAI now to secure a competitive advantage. This investment is crucial for developing high-value use cases, mainly within customer services and back-office functions, as it not only reduces costs but also aligns with evolving user expectations.
Generative AI in financial services is instrumental in detecting and preventing fraud through advanced data analysis. It also enhances risk management and credit scoring by efficiently evaluating and managing risks, leading to more accurate credit assessments.
The technology also excels in financial forecasting, personalizing marketing efforts, and improving customer experiences through integrated video capabilities. Additionally, generative AI provides tailored financial advice based on individual situations and goals. Its ability to summarize large documents efficiently is particularly beneficial in the document-intensive financial sector.