Financial services firms are charging ahead with artificial intelligence and digital transformation efforts, but a new KPMG analysis underscores that true progress hinges on proper underlying systems rather than speed alone. The KPMG Global Tech Report 2026: Financial services related insights, drawn from a worldwide survey of 760 technology executives in the sector, paints a picture of strong objectives paired with a clear-eyed focus on building the right infrastructure to support enterprise-wide change.
According to the research findings, 89 percent of respondents classify their organizations as either innovators—among the first to test emerging tools—or fast followers who adopt proven solutions quickly.
This confidence reflects a sector eager to harness AI for everything from operational streamlining to customer personalization.
Yet leaders recognize that scalable business outcomes demand more than flashy pilots.
More than half the organizations surveyed report that foundational elements such as high-quality data, secure cloud environments, and advanced cybersecurity are delivering the bulk of their current digital returns, even as AI investments ramp up.
AI adoption is accelerating dramatically. Today, only about 26 percent of financial institutions have moved AI use cases into full-scale production with measurable returns across multiple applications.
Within the next 12 months, however, 65 percent expect to reach that milestone. Banking and capital markets are projected to lead the charge, followed closely by insurance.
Asset management and private equity trail slightly but still anticipate significant gains.
Data and analytics maturity is also set to surge, with expectations jumping from low single digits at present to over 60 percent at top-tier levels by this time next year. Despite the momentum, hurdles remain.
Around 40 percent of executives admit they lack sufficient talent to execute their technology strategies fully, while more than half cite the burden of fixing legacy technical debt as a barrier to funding new initiatives.
Cybersecurity scaling faces obstacles for 37 percent of respondents, and 35 percent report similar roadblocks with AI and automation efforts.
Budget realities add pressure. Roughly one-third of tech spending still flows into routine maintenance rather than growth or transformation.
Regulatory complexity and rising cyber threats—exacerbated by AI-enabled attacks and intellectual property risks—further complicate the landscape, with many professionals planning considerable increases in cybersecurity and data analytics budgets this year.
Karim Haji, Global Head of Financial Services at KPMG International, emphasizes that technology alone cannot drive transformation.
He explained that sustainable advantage emerges when firms blend their proprietary data, client relationships, and domain expertise with agile external partnerships.
Shifting from rigid multi-year roadmaps to iterative planning, and rethinking “build versus buy” decisions, will be essential.
Successful business organizations tend to more proactively anticipate gains in operational efficiency, new revenue streams, accelerated innovation, and stronger customer experiences.
The report makes clear that financial services professionals who invest strategically in data governance, talent development, resilient infrastructure, and collaborative ecosystems will be relatively well-positioned to turn AI adoption into meaningful, enterprise-wide impact.
