Fintech Pulse
Get ready to explore the latest tech news for the Financial Services industry with my monthly newsletter! In this edition, we’ll look at how the financial services sector is making the most of Generative AI and the unique challenges they face. We’ll also discuss why having strong AI governance is essential in this fast-changing environment.
AI is the top investment priority for enterprises in 2024, surpassing security and cloud deployment, according to an IDC study of 823 U.S. IT and business leaders.
The study found that 73% of midsize and large enterprises use or plan to use AI to improve customer engagement, with 81% of large enterprises leading the way. Manufacturing (84%), financial services (78%), and technology (77%) are at the forefront.
The main benefits of AI are better operating efficiency and customer support. However, only 32% of enterprises have fully implemented digital transformation. Key challenges include IT skills gaps, budget constraints, and lack of leadership buy-in.
The financial services sector is undergoing a significant transformation marked by the increased adoption of Generative AI. A 2024 commissioned study by Forrester Consulting on behalf of SoftServe details where Gen AI implementation currently stands in this sector, and where it is heading. Despite an initial enthusiastic embrace and widespread implementation across departments, only one-third (33%) of the business leaders believe they have realized significant value from their Gen AI initiatives
Four main areas of need were identified for organizations to fully realize the potential of Gen AI: technical expertise, infrastructure upgrades, data governance, and strategic planning. All financial services participants expressed at least some concern over their organization’s current ability to execute Gen AI initiatives aimed at improving customer engagement, operational efficiency, risk management/regulation compliance, and employee experience due to a lack of technical expertise.
Despite the clear need for strategic roadmapping in Gen AI implementation, only 39% of financial services respondents are currently relying on a services partner to help identify current and emerging use cases. Infrastructure challenges and data governance emerged as a common burden, with 83% in agreement that they need help with consolidating and streamlining enterprise data for Gen AI models, and 83% stressing that governance is becoming increasingly important.
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As AI adoption and implementation increases, governance is not a luxury; it’s a necessity. SoftServe offers tailored AI governance frameworks specifically designed for financial services industry companies. Our expertise ensures compliance, enhances decision-making, and proactively manages risks.??
Combining state-of-the-art AI algorithms with existing systems, we facilitate seamless integration and enhance operational efficiency.
Our AI technologies are designed to scale and adapt to the growing needs of your business.?
Thank you for your readership and subscription. I hope that you found the material both informative and engaging. If you have any questions or wish to provide feedback, please feel free to reach out. Your input is highly valued, and I look forward to your thoughts.
Until next time!
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