A new global report reveals that financial services are at the forefront of adopting Generative AI (GenAI) technology, with banking leading other industries in implementation. Recent findings show that 17% of banking executives have fully integrated GenAI into their processes, while 60% currently use it to some extent, with nearly all others planning to adopt it soon. Key obstacles remain, particularly around data privacy and security, but banks are already realising the benefits of GenAI across various functions.
The report, titled Your Journey to a GenAI Future: A Strategic Path to Success in Banking, is based on a cross-industry survey by SAS and Coleman Parkes Research. Of the 1,600 leaders surveyed across 20 countries, 243 were senior banking executives overseeing their organisation’s GenAI strategy. Their insights shed light on how banks are implementing GenAI, tackling challenges, and advancing ahead of industries such as insurance, healthcare, and retail.
“GenAI is clearly a major trend across sectors, particularly in financial services,” said Alex Kwiatkowski, Director of Global Financial Services at SAS. “Our survey found that banks, alongside insurers, use GenAI at higher rates than other industries. Among the key benefits, nearly 9 in 10 banking leaders report improved risk management and compliance since deploying GenAI.”
Banks are not only invested in AI but have dedicated budgets to support its implementation. While interest rates on savings accounts may fluctuate, banks’ commitment to GenAI remains high. The survey found 98% of banking respondents are either using GenAI (60%) or plan to within the next two years (38%), with 90% allocating funds specifically for GenAI initiatives in the coming year.
Beyond the 17% fully implementing GenAI in business processes, another 43% are experimenting with it at an enterprise level. Six in 10 have launched at least one GenAI use case, marking the highest adoption rate across sectors. GenAI is widely used across departments, with higher-than-average deployment in marketing (47%), IT (39%), sales (36%), finance (35%), and customer service (24%).
“While GenAI is a powerful tool for banks, it also poses risks, as criminals exploit the technology to commit fraud faster than banks can implement protections,” said Stu Bradley, Senior Vice President of Risk, Fraud, and Compliance Solutions at SAS. “However, anti-fraud measures are only one of the many benefits for banks willing to embrace GenAI. Early adopters are already seeing returns on their investment across multiple areas.”
Banks are already seeing tangible GenAI benefits
For banks that have integrated GenAI, the technology is yielding benefits beyond aspirations, especially in internal processes. Majorities of executives report improvements in employee experience (90%), risk management (88%), and cost-saving efficiencies (85%).
Further, over three-quarters report gains in customer satisfaction (82%), data processing efficiency (78%), and sales growth through data-driven insights (76%). Marketing is a prominent area for GenAI, with 47% of banking executives citing its use. SAS’s related study also found banking marketers use GenAI for customer interactions (44%) and content creation (33%) and plan to expand usage to audience targeting and trend analysis.
Challenges in GenAI adoption remain for banking
Like all major investments, GenAI implementation in banking brings risks. Leaders’ main concerns include protecting customer data privacy (74%) and security (71%). Synthetic data has emerged as a possible solution, with 29% of respondents using it and 33% actively considering it.
Over half (54%) identified data integration as a challenge, and nearly half (49%) face difficulties moving GenAI projects from concept to practice. GenAI governance also presents issues, with only 6% having a “well-established” governance framework. Most (58%) report their frameworks as “in development,” while others operate on informal frameworks or lack them entirely. Key hurdles include technological limitations (30%) and transparency and accountability issues (30%).
“GenAI is transforming banking at an incredible speed, but responsible AI use requires strong governance,” said Kwiatkowski. “Trustworthy AI demands a foundation of human-centric principles, including inclusivity, transparency, and accountability.”
