Most Financial Institutions Using Generative AI

The majority of banks globally have either deployed or are in the process of deploying generative artificial intelligence (AI) tools, according to a new survey.

The survey of more than 400 banks worldwide, conducted by Hanover Research for banking technology provider Temenos, found that 11% of respondents had already implemented generative AI, while an added 43% were in the process of doing so.

The deployment of generative AI came alongside a broader focus on investing in technology to improve the customer experience. In fact, this was respondents’ top strategic priority, followed by the launch of new products and services and the pursuit of operational efficiencies.

Three-quarters (77%) said they were investing in data analytics and AI-driven insights and 68% in cloud-based core banking systems.

“While banks continue to invest in modernization, they’re doing so with a close eye on evolving market dynamics,” Isabelle Guis, Chief Marketing Officer at Temenos, said at the Temenos Community Forum when announcing the research.

“Financial institutions understand that staying competitive means being ready to adapt and there’s a growing recognition that failing to embrace AI soon could leave them behind.”

More than four in five respondents (81%) agreed that if banks do not implement AI technologies they will fall behind their competitors.

Importantly, 60% viewed AI as a tool to augment, not replace the human workforce.