ThoughtSpot has published a new report on the future of artificial intelligence and the future of financial services. This publication reveals 86% of banks and insurance companies plan to increase technology investment in AI by 2025 and outlines how AI is set to shape the future of the banking and insurance ecosystem.
The survey examined where and to what extent artificial intelligence (AI) technologies are adopted in this segment of financial services, how these institutions measure their success, what are the barriers to progress and how they are treated.
Based on a study commissioned by ThoughtSpot at the Economist Intelligence Unit (EIU), the report found that, Although there is a high degree of confidence in the benefits of AI,the reality is that technology is not widely used: more than half of respondents say that AI is not integrated into their company’s processes and offerings, and only 15% of them say that the technology is widely used throughout the organization.
However,the results that have already appeared, combined with the responses of respondents who intend to double,in the short term investment in AI, show that this technology is destined to experience a strong growth in its use in financial services.
“We are already seeing a massive impact of AI on the activities of financial institutions that reduces costs, but above all stimulates new growth.. The rapid increase in AI adoption and training rates is a clear indicator of the AI revolution that will unfold over the next five years,” said Sudheesh Nair, CEO of ThoughtSpot.
“AI is est the new engine of growth,and the release of its potential requires an investment in talent. Financial services companies need to train and re-qualify their employees to capitalize on the productivity and innovation gains made possible by AI.”
AI drives new growth for financial services
Banks and insurance companies see AI as an essential element in unlocking new growth opportunities and reducing costs. Respondents made it clear that AI will transform their business in a number of ways over the next en five years, including stimulating new products and services (27%), opening new markets or industries (25%) and paving the way for innovation (25%). About one-third (29%) respondents expect AI technologies to handle between 51% and 75% of their workload in the next five years.
In addition to driving future growth, AI technologies promise significant savings now and in the future: 37% of respondents say their organization has reduced operational costs through adoption and use of AI,and 34% expect AI to reduce spending over the next five years. With respect to the other benefits of this technology,one-third of respondents each reported greater grande use of predictive analytics (34%), increased ability of employees to manage workload (33%) improved customer satisfaction (32%).
According to the data,the sector is halfway to improving the skills of its employees. 49% of respondents said that training initiatives for employees to better understand AI are currently in place. 42% have plans to implement them.
“AI has the potential to truly transform the banking and insurance sectors,” said Dr. Katya Kocourek, Managing Editor, Thought Leadership of The Economist Group.
“Research shows the progress already made and the way forward to move the sector into the next phase of ADOPTION of AI. Like any potentially transformational technology, it will not be a risk-free path, but the impact on the future of banks and insurance companies is clear and promises to offer a world of value.”
While the long-term prospects for AI in financial services are promising, organizations have concerns about achieving these advances. The study found that 40% of organizations organisations cite risk,and safety in particular, as the biggest concern. While 55% of respondents have policies, procedures and monitoring processes in place for l’IA AI-based automation, 52% are confident in their ability to cope with AI-related risks, such as security.
The full report is available in French on the ThoughtSpot.com website.
Sponsored by ThoughtSpot, the study on artificial intelligence and the future of financial services is published in a report entitled The Road Ahead: Artificial Intelligence and the Future of Financial Services for banks and insurers, produced by the Economist Intelligence Unit (EIU). The report analyzes the en en results of a survey of 200 business and executive executives in investment banks, retail banks and insurance companies in North America, Europe and Asia-Pacific whose responsibilities cover both IT and non-IT functions, in insurance companies, investment banks and retail banks.