Recently, @Carlos Muñiz Morell posted about a paper describing how AI can be used in the financial services industry. He also complemented this post with a report conducted jointly by the Bank of England and the FCA, showing the results of a survey on AI in UK financial services in 2024.
In this same vein, I wanted to share a research conducted by SAS and Coleman Parkes based on a survey of 1,600 organizations worldwide from a wide range of industries, examining the responses of 243 senior banking leaders to better understand the banking industry's perspective on GenAI.
Adoption of GenAI in Banking
The banking sector stands out for its high adoption rate of GenAI. According to the study, 60% of banks are already using this technology, matching the insurance industry. Marketing departments lead the implementation with 47%, followed by IT with 39% and sales with 36%. This early adoption allows banks to explore and leverage GenAI capabilities across various operational areas.
Observed Benefits
The benefits of GenAI in banking are significant:
90% of banking leaders have reported improvements in employee experience and satisfaction.
88% have enhanced risk management and compliance measures.
85% have seen time savings and operational cost reductions.
These results demonstrate that GenAI is not only transforming internal processes but also improving efficiency and productivity in the sector.
Challenges and Concerns
Despite the benefits, implementing GenAI is not without challenges. The main concerns of banking leaders include:
Data privacy (74%)
Data security (71%)
Explainability and accuracy of GenAI results (55%)
Additionally, 54% of leaders mention difficulties in effectively using both public and proprietary datasets, and 49% face challenges in transitioning GenAI from the conceptual phase to practical use.
Solutions and Preparations
To address these concerns, banks are turning to innovative solutions like synthetic data. 29% of banks are already using synthetic data, and another 33% are actively considering it. This technology allows banks to preserve data privacy while optimizing their fraud and risk systems.
Future of GenAI in Banking
The future of GenAI in banking is promising. Sector leaders have high expectations for the impact of this technology:
58% believe it will improve the accuracy of their predictive analytics.
56% expect it to drive innovation and maintain a competitive edge.
54% think it will enhance customer personalization and engagement.
As banks continue to adopt GenAI, it is crucial to balance its transformative power with careful management of the associated risks and challenges.
For more detailed insights, you can consult the full research report in the attached PDF document.
Hi Raquel,
Raquel, thank you for sharing this insightful research! We'll be it next week on CuriousAI.net.
The rapid adoption of GenAI in banking is fascinating, and the high usage rates in marketing, IT, and sales align with what we’re seeing across industries. The reported benefits—especially in employee experience, compliance, and operational efficiency—clearly demonstrate GenAI’s transformative potential.
However, the challenges you highlighted, particularly around data privacy, security, and explainability, are critical. Financial institutions operate under stringent regulatory frameworks, and ensuring transparency in GenAI decision-making is essential for maintaining trust. The growing interest in synthetic data as a privacy-preserving solution is an interesting trend—one that could help banks mitigate risks while leveraging AI’s full potential.
Looking ahead, the biggest question is how banks will navigate the shift from early adoption to full-scale operationalization. Moving beyond proof-of-concept and integrating GenAI into core decision-making processes will require robust governance, AI literacy across teams, and stronger risk mitigation frameworks.
Exciting times ahead for the industry—thanks again for sharing!
Looking forward to discussing more about this topic.