02 Jan 2024 | Financial Services | blogs

AI Shakes Banking's Core- How AI is Reshaping the Banking Landscape

AI stands as a cornerstone reshaping banking, foreseeing a 20% CAGR in its adoption by 2032. The ascent of Generative AI promises bolstered operating margins, complemented by a surge in financial institutions opting for private cloud services for Machine Learning (ML). The banking sector's robust investment in AI during 2023 underscores its commitment. Achievements include reduced staff costs, enhanced Return on Equity (ROE), and streamlined operations through automated tasks and fraud detection. Nonetheless, challenges loom large, encompassing biased algorithms, cybersecurity threats, regulatory ambiguity, potential job displacement, elevated expenses, and the ecological impact of energy-intensive AI. Jasper Colin's recent study unveils AI's pivotal role in banking operations, advocating for AI-driven due diligence, data-centric research, and technology adoption to fortify the industry against future challenges.