AI is set to shape the future of the banking and insurance ecosystem, according to a new report commissioned by ThoughtSpot, the leader in search and AI-driven analytics. The report, “The Road Ahead: Artificial Intelligence and the Future of Financial Services,” conducted by The Economist Intelligence Unit (EIU), analyzes the sentiments of 200 business executives and C-suite leaders at investment banks, retail banks, and insurance companies in North America, Europe, and Asia Pacific.
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“The Road Ahead: Artificial Intelligence and the Future of Financial Services”
The study found that while there is a strong degree of confidence in the benefits of AI, the reality is that the technology is not largely in use: more than half of respondents say AI is not incorporated into their business’s processes and offerings, with only 15% saying the technology is used extensively across the organization. However, the benefits that have already emerged combined with respondents’ plans to double down on AI investment in the short-term show this technology is slated to drive a massive wave of future growth for the financial services industry.
AI Drives New Growth for Financial Services
Banks and insurance companies perceive AI as critical to unlocking new growth opportunities and reducing costs. Respondents were clear AI will transform their business in a number of ways over the next five years, including spurring new products and services (27%), opening up new markets or industries (25%), and paving the way for innovation (25%). About one-third (29%) of respondents expect between 51% and 75% of their workloads to be supported by AI technologies in five years’ time.
In addition to driving future growth, AI technologies promise significant savings both today and in the future: 37% of respondents report that their organization has reduced operational costs as a result of AI adoption and use, and another 34% predict that AI will lower their cost base over the next five years. When it comes to other benefits of AI, one-third of respondents each reported a greater use of predictive analytics (34%), increased employee capacity to handle workload volume (33%), and enhanced customer service and satisfaction (32%).
