Banks Are Accepting AI, But Are Struggling To Use It for Competitive Impact: Report

Banks Are Accepting AI, But Are Struggling To Use It for Competitive Impact

About 97% commercial banks are using artificial intelligence, says a new research from Genpact, a noted professional services firm focused on delivering digital transformation. However, the survey says that these institutions are unable to implement these technologies effectively for competitive advantage.

51% of the survey respondents are using AI simply for point solutions and individual tasks, with 27% testing in pilots, and only 19% leveraging it across the bank holistically. With pressures mounting from fintechs and other non-bank disruptors, these AI trials raise concerns about how effectively commercial banks can use the technology to improve customer experience and better compete.

Genpact’s study, Commercial Banking: The Customer Service Imperative, surveyed 500 senior commercial banking executives on the industry’s changing landscape. The research reveals that while many banks understand the growing importance of CX and AI, questions remain regarding their ability to use AI for greater value and mine data effectively to embrace digital transformation and enhance service.

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The good news is most banks are optimistic about the future. Two-thirds of respondents say they expect to use AI across their organization in the next 12 to 18 months, compared with fewer than one in five today. Yet, some executives surveyed seem hesitant about whether AI will deliver on its promises to drive new personalized services to improve customer experience. Notably, 13% say their organizations have no plans to use AI in the next 12 to 18 months, up from 3% today, which may suggest a lack of confidence in current pilots and long-term execution.

“With digital technology opening new access to sales and payment data, non-traditional players have leapfrogged many established commercial banks in delivering quality customer experiences,” said Mark Sullivan, global business leader, Banking and Capital Markets, Genpact. “Banks must do a better job at anticipating and quickly incorporating CX innovations. AI can be a major driver given its ability to interpret droves of data to develop highly-tailored solutions that businesses want.”


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Prajakta Hebbar
Prajakta is a Writer/Editor/Social Media diva. Lover of all that is 'quaint', her favourite things include dogs, Starbucks, butter popcorn, Jane Austen novels and neo-noir films. She has previously worked for HuffPost, CNN IBN, The Indian Express and Bose.

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