Banks Are Betting Big on GenAI—But Can They Prove ROI?
Hey Digital Banking Fanatic!?
GenAI is shaking up the banking world, but the real challenge? Proving it’s worth the investment. NTT DATA’s latest report reveals a major divide—half of banks see GenAI as a tool for boosting productivity, while the other half expect it to slash costs. With financial constraints tightening, the pressure to deliver ROI has never been higher.
“Generative AI represents a pivotal moment for the banking industry,” says Robb Rasmussen, Head of Global Marketing & Communications at NTT DATA. “While the benefits are enormous, banks need clear strategies, structured implementation, and strong governance to achieve real returns.” The study shows that 58% of organizations are already embracing GenAI, up from 45% last year—proving that adoption is accelerating fast.
But strategies vary worldwide. While nearly 6 in 10 US banks are looking to cut IT budgets, European banks are prioritizing productivity. Some are betting on full automation, while others prefer a hybrid human-AI approach. The key to success? Balancing innovation with fiscal responsibility. Can banks strike that balance before the next wave of disruption hits??
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3 周Traditional banks have taken decades to transition from legacy systems to next-generation IT due to factors like bureaucracy and ROI considerations. For similar reasons, the adoption of Generative AI in the traditional banking sector is likely to be slow. In contrast, new-age banks—unburdened by legacy infrastructure and built with agility in mind—will be much quicker to experiment with GenAI for productivity gains and cost efficiency. It won’t be long before we start seeing reports on the ROI from these implementations. Somewhere in the world, discussions are likely already underway about creating a fully AI-driven bank. While I haven’t come across any published articles on this yet, I wouldn’t be surprised to see one soon.