The financial services industry is investing in AI and generative AI as uses for both technologies expand.  

Ninety-seven percent of FIs plan to increase investment in AI to identify uses, optimize workflows and enhance their infrastructures, according to chip-making behemoth Nvidia’s “State of AI in Financial Services: 2024 Trends” report, published today. The study surveyed 400 global financial services professionals in October 2023. 

The report found:

• 48% of respondents are using AI to drive operational efficiencies, including automating manual processes and optimizing resource allocation; 
• 45% are using the tech for fraud detection and anti-money laundering operations; 
• 34% are using AI for marketing purposes, including using customer data to generate personalized recommendations; and 
• 27% are using AI for sales operations, like AI-optimized lead generation, customer relationship management and sales forecasting. 

Financial institutions including $2.4 billion Bank of America, $1.9 trillion Santander Bank and $61 billion Valley Bank have recently implemented AI for chatbots, document processing and internal efficiency functions.  

Gen AI

FIs are also expressing interest in generative AI, Malcolm deMayo, vice president of financial services at Nvidia, told Bank Automation News.  

In fact, 43% of FI professionals surveyed noted that they are already using generative AI for fraud detection and portfolio optimization, according to the report. Additionally, 55% of respondents are actively seeking generative AI workflows for their institutions.  

“Leading banks are making investments in the talent and infrastructure to experiment with the technology, re-calibrate their control framework, and ideate on uses,” deMayo said. “It is unclear exactly how smaller FIs are tackling generative AI, but they are relying on ISVs [independent software vendors] and service providers as they begin their generative AI adoption journey.” 

Banks including $197 billion Ally, digital bank bunq and $212 billion Fifth Third are exploring generative AI within their operations.  

The survey showed that more than half of financial services professionals believe AI will play an important role in helping FIs provide high-quality service and control costs.  

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