The Story:
New data from Accenture finds that banks that implement Generative AI (GenAI) at their institutions have the potential to boost productivity by nearly one-third. Even more, banks can expect revenue increases upwards of 6% using GenAI. Accenture’s Banking on AI notes that following the launch of ChatGPT at the end of 2022, banking’s “early adopters” were already looking at use cases and proof points for the technology. “Today, little more than a year later, virtually every bank has a generative AI strategy of some description and is running a variety of proofs of concept, with many reporting impressive results,” according to Accenture.
The Takeaway:
While the potential for GenAI in financial services is still in its infancy, this new wave of AI will surely reshape the banking sector, as digital transformation did before it, providing “new capabilities, revenue opportunities, and cost reductions,” according to an S&P analysis. Banks and credit unions that embrace this technology will be in the best position to build AI into a competitive advantage. “GenAI is an amplifier of human intelligence,” says Adrenaline’s Chief Brand Officer, Juliet D’Ambrosio, on the Believe in Banking Podcast. “It enables bankers to do what only bankers can do – which is look someone in the eye, make determinations, make decisions – that are empowered by this intelligence, but not replaced by it.”
Sources: Accenture, “Banking on AI,” January 3, 2024, S&P; “AI in Banking: AI Will Be An Incremental Game Changer,” October 31, 2023; and Believe in Banking, “Age of Intelligence: AI’s Influence on Banking,” March 13, 2024