Artificial intelligence (AI), particularly the advancements in generative AI (GenAI), has taken the world by storm. Most senior executives in the banking, financial services, and insurance (BFSI) industry believe AI’s impact on their business model will be greater than or equal to earlier disruptive technologies, and they’re optimistic about its potential. Yet there is no consensus on how to approach AI. This report provides unique insights about how BFSI firms are moving forward to create effective AI strategies for their enterprise.
This report investigates:
Most BFSI executives surveyed have a positive sentiment toward AI.
Yet there’s no consensus on AI adoption strategies and not enough metrics to measure success.
We asked executives what their primary concerns are about AI, especially with the advent of generative AI (GenAI). Five strategic challenges are apparent.
As the integration of AI into business processes accelerates, measuring the financial return on such an investment becomes increasingly significant. But only 27% of BFSI executives said they have "good enough" metrics and KPIs for their current stage of AI deployments.
Without adequate KPIs for AI-enabled operations, proving ROI and getting future buy-in is challenging.
Future of AI
Even in this era of AI, there’s no substitute for human creativity, empathy, and strategic thinking. 63% of BFSI companies think human strategic decision-making and creativity will remain essential to their competitive advantage.
Most executives believe AI will augment and enhance human capabilities, enabling people to focus on higher-value activities. 43% of BFSI companies expect most of their employees will be using GenAI on a daily basis in three years.
Future AI implementations will focus on innovation and revenue growth. In fact, as many as 88% of BFSI Pacesetter companies—those that enjoy greater financial success than the others—are more focused on using AI to spur innovation.
Embrace AI initiatives that support organizational priorities and use cases that can potentially enhance value chains and drive business outcomes like revenue growth, cost savings, and superior customer experience.
Create a multidimensional approach to AI adoption that encompasses strategic goals beyond productivity and revenue growth to include boosting quality, reducing risks, enhancing operational efficiencies, and improving organizational decision-making.
Invest not only in the necessary technology and infrastructure, but also in a culture that embraces change, experimentation, and continuous learning.
Capitalize on AI’s capabilities to deliver more personalized, proactive, and valuable experiences across the customer journey, differentiating your business from the competition.
Be ready for AI to expand revenue, opportunity, and innovation, and create new ways for humans to do their current jobs or even create new roles.
"From hyper-personalised services to efficient operations, improved risk management and accurate decision-making, BFSI firms are exploring the enormous potential that AI and Generative AI presents to transform businesses. The findings from the study bear testimony to the optimistic outlook of the firms towards the value that AI can create. At the same time, they are conscious about using it responsibly and safely. As partners to leading BFSI firms, TCS has been collaborating with customers to build enterprise-wide AI foundation with necessary guardrails in place to turn potentials into tangible outcomes and set the organizations on the path of growth."
SHANKAR NARAYANAN
President & Business Head, BFSI – UK, EMEA & APAC, TCS