- A new Generative AI (Gen AI) report by Ernst & Young (EY) shows that 99% of financial service leaders report that their organisations are deploying AI in some form, with Gen AI being the leading use case.
- Despite this, more than one in five financial services leaders express nervousness or scepticism about the potential impact of Gen AI on their organisations.
- Among the sectors, insurance tops the chart with 24% being unsure of Gen AI’s impact.
- The report also highlights the challenges facing the implementation of Gen AI, including lack of proper data and technology infrastructure, lack of commitment from leadership, and unclear governance and ethical frameworks.
- 55% of those surveyed expressed support and optimism about using AI today, and 77% believe Gen AI will benefit the financial services sector overall in the next five to ten years.
As AI continues to innovate and evolve, it’s becoming increasingly apparent how essential it is for organisations to have a technically robust foundation, according to Sameer Gupta, EY Americas Financial Services Organisation Advanced Analytics Leader. Implementation of AI should not be seen as a mere addition to existing systems. Instead, it should be well-crafted and integrated into a company’s data and technological architecture.
EY suggests that businesses, especially those sceptical about AI’s impact should put in place a robust plan to ensure that Gen AI is tailored to their specific needs. This strategy would involve planning, education, and an agile test and learn strategy, enabling businesses to leverage AI’s potential benefits.
The report also highlights the importance of addressing deployment challenges such as outdated data infrastructures, lack of technology infrastructure, lack of commitment from leadership, and inconsistent governance and ethical practices.
Despite these hurdles, the consensus among survey respondents appears to be one of general optimism. 55% of those surveyed are supportive and optimistic about using AI today, while 77% believe Gen AI will benefit the financial services sector overall in the next five to ten years.
In conclusion, the increasing deployment of AI in financial services signals a significant shift, and with the right measures in place, the sector seems poised to harness its benefits to enhance and streamline many aspects of their operations.
