Improving operating efficiency is the most common reason banks are considering using generative artificial intelligence (GenAI). Banks are also considering using GenAI to improve customer experience and drive business growth.
These are among the key finding from a worldwide survey from Temenos, conducted by Hanover Research, which gathered perspectives from 420 business and technology leaders in financial services on the transformative impact of Generative AI (GenAI) in banking.
The survey reveals:
- Three quarters (75%) of banks are exploring Gen AI deployment with 36% having already deployed or in the process of deploying it, while another 39% are considering opportunities for deployment.
- Among banks already deploying GenAI or exploring opportunities, nearly half (43%) plan to increase their investment in the technology this year compared to last year.
- Despite its promise, most (86%) banks have data protection concerns with GenAI. Additionally, over half cite concerns with legal requirements (60%) and hallucinations—instances where GenAI provides inaccurate results (59%).
- Looking ahead, 73% of respondents agree that Agentic AI—AI systems capable of making decisions and taking actions independently—will transform banking.
Isabelle Guis, chief marketing officer of Temenos, says: “The survey highlights both the enthusiasm and challenges banks are facing as they explore GenAI. There’s huge potential for GenAI to enhance efficiency, address operational challenges, and elevate the customer experience. However, concerns around data privacy, legal requirements and accuracy remain top of mind.
“GenAI is not a silver bullet – banks also need to balance a human touch in the process to ensure that interactions remain differentiated and build trust with their customers.”