IBM Study Reveals Generative AI to Boost Banks' Financial Performance by 2025
IBM's latest report anticipates significant boosts in banks' operational efficiency and customer experiences through strategic deployment of generative AI, impacting global financial markets by 2025.
A network of translucent financial symbols, including currency signs and data graphs, interconnected by glowing lines, represents the evolving landscape of AI in the banking workforce for 2025.
In a transformative revelation for the global financial sector, IBM has unveiled its latest report from the IBM Institute for Business Value, projecting a groundbreaking rise in the adoption of generative AI by banks in 2025. With only 8% of banks systematically developing generative AI in 2024, this trend is set to pivot dramatically as institutions transition from pilot phases to comprehensive, strategic AI implementations.
The report highlights the evolving convergence in banking, which is now leading to divergent financial performance outcomes. IBM emphasizes the critical need for banks to reimagine and adeptly execute their business processes. The insights reveal that banks which effectively embrace automation will stand out as industry leaders, while others may lag behind.
According to the study, a noticeable shift in customer behaviors is occurring. Over 16% of clients globally express comfort in adopting a branchless, fully digital banking relationship. This indicates a competitive shift where banks are now prioritizing high-value services, including embedded finance and advisory services tailored for affluent investors and SMEs.
Shanker Ramamurthy, IBM Consulting's Global Managing Director for Banking & Financial Markets, notes the pivotal shift in generative AI deployment. As financial institutions prepare for a significant year of transformation, he asserts that the strategic use of generative AI will enhance customer service, operational efficiency, risk management, and IT infrastructure modernization.
IBM's report also extracts insights from industry C-suite leader sentiment and economic data across key markets including the United States, China, and the European Union. This extensive analysis offers vital prospectives for banks and their partners on predictive industry trends, underscoring the essential role of generative AI in reshaping the sector.
For a comprehensive understanding of these developments and to access the full report, visit IBM's official site. The evolution in banking strategies outlined by IBM is poised to redefine financial service landscapes, marking 2025 as a landmark year for technological integration and growth.
