IBM Predicts Generative AI to Revolutionize Banking by 2025
IBM's latest report suggests that generative AI will significantly enhance financial performance in banks by 2025 as strategic adoption increases.
A futuristic robot engages with various digital banking elements, including a bank building, mobile devices, and individuals interacting with financial tools like a piggy bank and laptops.
IBM has released an insightful report predicting that generative artificial intelligence (Gen AI) will fundamentally elevate the financial performance of banks by 2025. This transformative shift comes as financial institutions transition from pilot projects to enterprise-wide strategic implementations of AI technology.
In 2024, only 8% of banks were systematically developing Gen AI solutions, with 78% adopting a more tactical approach. However, the landscape is rapidly evolving. As banks integrate these technologies to expand services, the focus has shifted towards strategic applications like agentic AI, which are anticipated to redefine customer interactions and enhance service delivery.
According to IBM Consulting's Global Managing Director for Banking & Financial Markets, Shanker Ramamurthy, banks are strategically realigning to harness AI's potential by improving customer experiences, operational efficiencies, risk management, and IT infrastructure modernization. These advancements are poised to segregate market leaders from their contemporaries in the financial sector.
The report highlights that 60% of surveyed banking CEOs are prepared to embrace certain risks associated with AI to maintain competitiveness and leverage automation benefits. With a noted increase in branchless, fully digital banks gaining consumer comfort, the competition is steering towards value-added services such as embedded finance and personalized advisory services for affluent investors and SMEs.
IBM's analysis incorporates C-suite leader sentiments, customer behaviors, and economic data from eight key markets, including the U.S., UK, and UAE, offering strategic insights to financial institutions and their ecosystem partners. For further details and a comprehensive overview, interested parties can access the full report through IBM's official site.
As a leader in enterprise AI, IBM continues to drive innovation in the financial services sector, offering a robust array of solutions and partnerships that guide financial entities through transformative digital journeys. This report underscores the important role generative AI is expected to play in redefining the banking industry by the mid-2020s.
