Strategic Intelligence: Generative AI in Banking

This report examines the adoption of Generative AI in banking. It summarizes the key trends within technology, macroeconomics, and regulation impacting Gen AI across the next 12-24 months, to establish key gridlines of change. It then provides an industry forecast of the expected adoption of AI and Gen AI, specifically with banking, before delving into indicative case studies within products and services, channels, operations, and infrastructure. A delivery model section is also presented, elucidating how banks are setting up organizationally to deliver Gen AI at scale. Finally, the report offers a firm-level summary of Gen AI performance, including both direct-to-consumer providers of financial services as well as established and emerging technology vendors.

Generative AI exploded into the mainstream when Open AI introduced ChatGPT. The volume and velocity of adoption outstripped everything that went before, reaching 1 million users in just five days. Since then, a palpable fear of missing out has seen significant preparatory activity, with sharp increases in hiring activity, patent applications, M&A activity, and corporate mentions. The industry was adamant that Gen AI would be analogous to the mobile device, in that every product and process would have to be re-visited and re-imagined in light of the new capabilities GenAI could bring.

Scope

• According to the analyst forecasts, the total AI market, including software, hardware, and services, will be worth $1.03 trillion in 2030, having grown at a compound annual growth rate (CAGR) of 39.1% from $103.0 billion in 2023.
• The generative AI portion of the AI market is expected to be worth $75.7 billion in 2028, up from just $2.8 billion in 2023 at a CAGR of 93.7%.
• The analyst’s Patent Analytics shows that the total patent publication counts for AI in financial services increased at a CAGR of 23% from 1,502 in 2016 to 7,770 in 2024.

Reasons to Buy

• Identify the key players within gen ai in banking across both direct-to-consumer providers of financial services and the vendor tech partners that work with them, covering both incumbents and emerging players
• Understand the key the key technological, macro-economic and regulatory trends shaping the evolution of gen ai in consumer financial services next 12-24 months out
• Assess various external market indicators on the likely speed and scale of gen ai disruption, across tech spend, patent applications, hiring activity, corporate filing mentions, fraud rates, consumer satisfaction, etc.
• Review the most proven use cases from banks leveraging Gen AI across key parts of the value chain
• Understand at a firm level which players - both banks and vendors - are best positioned to benefit from the evolution of gen ai in banking.