Spending on GenAI by banks to reach $85 bn

The spending on GenAI by banks will reach $85 billion in 2030, from $6 billion globally in 2024 which is a 1,400 per cent growth, a report showed on Tuesday.

Leading banks will adopt generative AI services to offer more personalised user experiences, enabling them to provide increasingly compelling services at reduced cost, according to Juniper Research.

“Using AI at the heart of operations will enable banks to provide a differentiated and personalised user experience, while reducing costs. By not making AI a priority today, banks risk losing ground to competitors,” said research co-author Nick Maynard.

Generative AI platforms learn patterns and structure from training data, and can create text, images and other media.

The research found that generative AI will enable drastic change at banks by providing personalised spending insights and easier access to customer trends. Banks will increasingly shift to an AI-centric strategy, as these business models are essential to competing effectively in a highly dynamic banking environment, the report noted.

“Banks must understand investment now is vital to GenAI, as this can ensure that banks have enough time to build the highest-value use cases, such as GenAI’s use within customer services and back-office roles,” the report mentioned. This investment will enable banks to gain a competitive advantage, as their costs reduce and user expectations around experience shift.