The spending on generative artificial intelligence by banks will reach $85 billion by 2030, from $6 billion globally in 2024, growing by over 1,400%, according to a report by Juniper Research.
The report predicted that leading banks will adopt generative AI services to offer more personalised user experiences, which will allow banks to provide increasingly compelling services at reduced cost.
Generative AI will enable change in the banking sector by providing personalised spending insights and easier access to customer trends. Banks will increasingly shift to an AI-centric strategy, as these business models are essential to competing effectively in a highly dynamic banking environment, the report said.
Generative AI platforms learn patterns and structure from training data and can create text, images and other media. Common use cases in the banking sector include chat and voice bots, customer onboarding, fraud detection, investment advice and financial forecasting, personalised marketing campaigns, portfolio management, servicing, spending insights and transaction processing.
According to the report, banks must understand that investment in generative AI now is vital, as this will allow banks to have enough time to build the highest use cases, such as generative AI’s use within customer services and back-office roles. The investment will enable banks to gain a competitive advantage, as their costs reduce and user expectations around experience shift.
“Using AI at the heart of operations will enable banks to provide a differentiated and personalised user experience, while reducing costs. By not making AI a priority today, banks risk losing ground to competitors,” said research co-author Nick Maynard.
