EY Generative AI Survey Highlights Uncertainty in AI Adoption Across Financial Services
Posted: December 11, 2023 11:20 AM Updated: December 11, 2023 11:20 AM
Correction and fact check date: December 11, 2023, 11:20 AM
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EY has released its 2023 Financial Services GenAI Survey assessing the impact of AI integration on financial services processes.
Ernst & Young (EY) today released its 2023 Financial Services GenAI Survey. The firm interviewed more than 300 managing directors and managing directors of financial institutions with $2 billion in revenue across the banking and capital markets, insurance, wealth and asset management industries.
The survey assessed the potential impact of artificial intelligence (AI) integration on productivity, talent, skills, and risk management, as well as capital allocation and spending plans for generative AI technologies.
Among the key findings and most noteworthy insights, the company found that within the financial services environment, nearly all (99%) of surveyed leaders revealed integration of AI within their organizations, with all respondents saying they were already using it or planning to use it. emphasized. Specifically, the use of generative AI within organizations.
Amid these plans for universal adoption, more than one in five respondents say they are anxious or skeptical about the potential impact of generative AI on their organizations. The same proportion are also not confident that their organization is well-positioned to take advantage of the potential benefits that AI could bring.
In particular, banking and capital markets leaders showed the lowest level of skepticism at 17%, followed closely by wealth and asset management at 21%.
Financial services envisions a positive AI future
Financial services leaders are optimistic about AI adoption and recognize its potential to improve customer experiences.
Indicative of a generally positive outlook, statistics show that 55% of respondents expressed support and optimism about the use of AI in their organizations. Looking to the future, 77% of executives see generative AI as beneficial to the financial services industry over the next five to 10 years.
Specifically, 87% of leaders identify specific opportunities for AI in improving customer and client experiences.
Challenges and Opportunities of Implementing Generative AI
Exploring and implementing generative AI comes with its own set of challenges. When asked about the obstacles financial organizations may face in leveraging technology, leaders identified the following as key obstacles:
- 40% said they lack adequate data infrastructure and 35% said they lack technology infrastructure.
- 36% said there was a lack of clear commitment from leadership.
- 33% said governance and ethical frameworks were unclear.
For organizations looking to leverage the benefits of AI, a key determinant of success lies in gaining a deeper understanding of and improving their data infrastructure.
The survey highlights this point as leaders identify the following as the top three ways AI will contribute to the financial services industry:
- 46% said data processing reduces risks.
- 38% cited the creation of new products and hyper-personalized marketing.
- 37% say their data management processes and accuracy have improved.
Exploring human factors
Focusing on the human aspects of AI implementation is equally important for technology infrastructure. Survey data shows that 44% of leaders perceive access to skilled resources as a challenge for AI implementation, and the pool of already skilled professionals is limited.
“Part of the solution includes implementing upskilling programs that equip today’s workforce with the skills they need to help leaders and businesses succeed in an increasingly AI-driven world.”
Michael Fox, Managing Partner, EY Americas Financial Services Accounts, said:
The new 2023 EY Financial Services GenAI Survey outlines financial services’ forward-looking stance on AI integration. Implementing AI in financial services will transform the way industry leaders learn, serve customers, process data, and manage risk.
The insights discovered highlight the industry’s positive sentiment and efforts to maximize AI benefits.
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Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through writing about VCs, notable cryptocurrency projects, and participating in science writing.
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alice davidson
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through writing about VCs, notable cryptocurrency projects, and participating in science writing.
more articles