Generative AI could boost bank revenues by 6 per cent in the next three years. Banks which effectively adopt and scale generative AI could increase employee productivity by up to 30 per cent, streamlining numerous language-related tasks, revealed a latest report by Accenture.
Operating income could increase by around 20 per cent, while return on equity levels could rise by 300 basis points.
By helping banks operate more efficiently, the technology could lead to 1-2 per cent in cost savings, with cost-to-income ratios declining by up to 400 bps, the report highlighted.
About 41 per cent of all banking occupation have a high potential for automation. Roles that primarily involve collecting and processing data could greatly benefit from automation as their routine tasks could be supported by generative AI.
This could improve speed and accuracy, reduce costs and relieve employees of the more tedious aspects of their jobs.
Further, Gen AI could help in roles with a high potential for augmentation. Approximately 34 per cent of bank employees whose work involves a high measure of judgement, including credit analysts and relationship managers, could be empowered by generative AI tools, the report said.
About 25 per cent of all bank employees will similarly benefit from both automation and augmentation, including customer service agents who spend time responding to inquiries, explaining services and preparing documentation.
Banks will need to optimize the usage of their generative AI applications and upskill existing employees while attracting specialized AI and data talent to support the scaling and operationalization of the technology, the report added.
Banks that have early success with generative AI shared that they had a focus on lower risk, high-volume use cases (middle and back office), with a defined operating model and centralized discretionary funding to pilot high-value applications.
Further, forward-thinking banks have strong data governance policies and procedures in place and have started migrating from data lakes to decentralized data meshes.
To make the most of generative AI, a modern digital core leveraging the power of cloud, data, and AI is essential, the report asserted.
