The financial services industry is reaching an important milestone with AI, as organizations move beyond testing and experimentation to successful AI implementation, driving business results.
NVIDIA’s fifth annual State of AI in Financial Services report shows how financial institutions have consolidated their AI efforts to focus on core applications, signaling a significant increase in AI capability and proficiency.
AI Helps Drive Revenue and Save Costs
Companies investing in AI are seeing tangible benefits, including increased revenue and cost savings.
Nearly 70% of respondents report that AI has driven a revenue increase of 5% or more, with a dramatic rise in those seeing a 10-20% revenue boost. In addition, more than 60% of respondents say AI has helped reduce annual costs by 5% or more. Nearly a quarter of respondents are planning to use AI to create new business opportunities and revenue streams.
The top generative AI use cases in terms of return on investment (ROI) are trading and portfolio optimization, which account for 25% of responses, followed by customer experience and engagement at 21%. These figures highlight the practical, measurable benefits of AI as it transforms key business areas and drives financial gains.
Overcoming Barriers to AI Success
Half of management respondents said they’ve deployed their first generative AI service or application, with an additional 28% planning to do so within the next six months. A 50% decline in the number of respondents reporting a lack of AI budget suggests increasing dedication to AI development and resource allocation.
The challenges associated with early AI exploration are also diminishing. The survey revealed fewer companies reporting data issues and privacy concerns, as well as reduced concern over insufficient data for model training. These improvements reflect growing expertise and better data management practices within the industry.
Generative AI Powers More Use Cases
After data analytics, generative AI has emerged as the second-most-used AI workload in the financial services industry. The applications of the technology have expanded significantly, from enhancing customer experience to optimizing trading and portfolio management.
Notably, the use of generative AI for customer experience, particularly via chatbots and virtual assistants, has more than doubled, rising from 25% to 60%. This surge is driven by the increasing availability, cost efficiency and scalability of generative AI technologies for powering more sophisticated and accurate digital assistants that can enhance customer interactions.
Advanced AI Drives Innovation
Recognizing the transformative potential of AI, companies are taking proactive steps to build AI factories — specially built accelerated computing platforms equipped with full-stack AI software — through cloud providers or on premises. This strategic focus on implementing high-value AI use cases is crucial to enhancing customer service, boosting revenue and reducing costs.
By tapping into advanced infrastructure and software, companies can streamline the development and deployment of AI models and position themselves to harness the power of agentic AI.
Conclusion
The financial services industry is making significant progress in AI adoption, with companies seeing tangible benefits and overcoming barriers to success. As financial institutions continue to invest in AI, they can expect to drive revenue and cost savings, enhance customer experience, and innovate their business operations.
FAQs
Q: What are the top AI use cases in the financial services industry?
A: The top AI use cases in terms of return on investment (ROI) are trading and portfolio optimization, followed by customer experience and engagement.
Q: How many companies have deployed their first generative AI service or application?
A: Half of management respondents said they’ve deployed their first generative AI service or application, with an additional 28% planning to do so within the next six months.
Q: What are the benefits of AI adoption in the financial services industry?
A: Companies investing in AI are seeing tangible benefits, including increased revenue and cost savings, as well as enhanced customer experience and innovation in business operations.
