Priya PatelTLDR:
- The spending on generative artificial intelligence (AI) by banks is expected to reach $85 billion by 2030, growing by over 1,400% from $6 billion in 2024.
- Generative AI services will allow banks to offer more personalized user experiences and provide compelling services at reduced costs.
- Banks will increasingly shift to an AI-centric strategy to compete effectively in the dynamic banking environment.
- Generative AI platforms in the banking sector can be used for various purposes including customer onboarding, fraud detection, personalized marketing campaigns, and transaction processing.
The spending on generative artificial intelligence (AI) by banks is expected to reach $85 billion by 2030, growing by over 1,400% from $6 billion globally in 2024, according to a study by Juniper Research. The report predicts that leading banks will adopt generative AI services to offer more personalized user experiences, allowing them to provide compelling services at reduced costs. Generative AI will enable the banking sector to provide personalized spending insights and easier access to customer trends. The report suggests that banks will increasingly shift to an AI-centric strategy as these business models are crucial for competing effectively in the highly dynamic banking environment.
Generative AI platforms in the banking sector can learn patterns and structures from training data, enabling them to create text, images, and other media. The common use cases for generative AI in banks include chat and voice bots, customer onboarding, fraud detection, investment advice, financial forecasting, personalized marketing campaigns, portfolio management, servicing, spending insights, and transaction processing.
The report emphasizes the importance for banks to invest in generative AI now as it will allow them to build the highest value use cases, such as using generative AI in customer services and back-office roles. Investing in generative AI will give banks a competitive advantage by reducing costs and meeting user expectations for personalized experiences. Research co-author Nick Maynard warns that banks risk losing ground to competitors if they do not prioritize AI in their operations.
