One in five are not confident that their organizations are well-positioned to “take advantage of the potential benefits AI might bring,” according to an update from Ernst & Young LLP (EY US) which released its 2023 Financial Services GenAI Survey.
Nearly all (99%) of the financial services leaders “surveyed reported that their organizations were deploying artificial intelligence (AI) in some manner, and all respondents said they are either already using, or planning to use, generative AI specifically within their organization.”
Amid these universal adoption plans, “just over one in five respondents said they are nervous or skeptical about the potential impact of GenAI on their organization.”
That same percentage also “does not feel confident that their organizations are well-positioned to take advantage of the potential benefits AI might bring.”
Insurance is ranked highest in “the nervous or skeptical category (24%), while banking and capital markets leaders had the lowest levels of skepticism (17%), followed by wealth and asset management (21%).”
David Kadio-Morokro, EY Americas Financial Services Innovation Leader, said:
“While there’s a whole world of possibilities and efficiencies AI can create for financial services in areas ranging from data analysis to customer service optimization, blind optimism and hype around the technology can ultimately have a counterproductive impact on a business. We like to take an ‘innovation intelligence’ approach to putting artificial intelligence to work — planning, education and an agile test and learn strategy for implementation are imperative for those looking to make the most of AI’s potential benefits.”
AI Outlook: Optimism Now and in the Future
The majority of respondents felt positive “about AI, with more than half (55%) saying they felt supportive and optimistic about using AI in their organization.”
The long-term sentiment is “even more optimistic, with 77% of executives viewing GenAI as an overall benefit to the financial services industry in the next 5-10 years. Leaders see a particular opportunity in customer and client experience, with 87% stating that they believe AI can bring improvements to this space.”
AI Implementation: It’s Time to Get Back to Basics
Taking advantage of, and deploying, GenAI is not “without its hurdles. When asked about the challenges financial organizations will face in taking advantage of GenAI,” leaders ranked the following as top barriers:
- 40% said lack of proper data infrastructure and 35% lack technology infrastructure
- 36% said lack of clear commitment from leadership
- 33% said unclear governance and ethical framework
Sameer Gupta, EY Americas Financial Services Organization Advanced Analytics Leader, said:
“Generative AI holds the potential to revolutionize a broad array of business functions. With each new wave of AI and analytic innovation, it becomes increasingly clear how important it is to have a tech stack with a solid foundation. Our role is to support financial services organizations in making sure their legacy data and technologies are unimpeachable before adding AI applications on top of existing systems.”
Methodology
Wakefield Research conducted this survey “between August 15–28, 2023, among 300 Executive Directors, Managing Directors or higher at financial organizations with $2b+ in revenue.”
Financial organizations are defined “as across the banking and capital markets, insurance, and wealth and asset management industries, with 100 responses collected from each sector.”
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