Artificial intelligence has significantly reshaped how financial services sectors operate, and adopters of the technology believe it’s given them a competitive advantage. Industry leaders utilizing the hardware and software solutions say they’re improving efficiency, reducing costs, managing risks and even generating new revenue opportunities.
Not every financial institution is on board with AI and machine learning, however. A large portion of industry players are still exploring the use of AI and ML or rejecting it altogether, citing concerns over security, high costs and most importantly, a lack of required skill sets.
In new research from Arizent, technology leaders from banking, insurance, mortgage and wealth management sectors describe their relationship with data-driven decision making, the significant hurdles in implementing the technology and the revenue-generating power the solutions have delivered.
Key Findings
- Most leaders at financial services firms believe their companies are staying competitive in data access, management and integration efforts. However, just 51% of those surveyed say their firms are actively implementing AI and ML tools beyond planning and investigative phases.
- Fraud detection and risk management are at or near the top of financial services’ AI and ML priorities. For the small percentage of institutions not using cloud computing for data management, data security is an overwhelming concern.
- Beyond security, companies most often deploy AI and ML tools for common business functions including operations, marketing, accounting, finance and customer engagement. Each financial services sector also reports using AI for niche industry functions like claims processing, speech recognition and telematics to track vehicles.
- A lack of talent is the biggest hurdle for companies not yet implementing AI and ML solutions. High costs to implement the technology are another roadblock for non-adopters.
- The biggest proponents of AI and ML say the technologies both save and make money, as well as help identify cross-sell products and develop new financial products. The tools will also impact employees themselves; 93% of mortgage professionals believe AI will lead them to reduce their headcounts in the next 12 to 36 months.
Why read this report?
This report provides business leaders insight into how their peers are integrating, governing and securing artificial intelligence and data analytics in meeting internal and customer-facing objectives.