GenAI Could Accelerate Bank Performance in Next 3 Years: Accenture Report Every role in every bank is likely to benefit in some way from generative AI, it states
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
The global generative AI market size is anticipated to reach USD 109.37 billion by 2030, according to a new report by Grand View Research. Some of the biggest beneficiaries of this advanced technology include Media & Entertainment, BFSI, IT & Telecommunication, Healthcare, Automotive & Transportation, and Gaming.
Notably, Gen AI is expected to boost India's GDP by USD 359-438 billion by 2030, representing a 5.9-7.2 percent increase.
Accenture's 'The age of AI: Banking's new reality' report states that 73 per cent of the time spent by US bank employees has a high potential to be impacted by generative AI, 39 per cent by automation, and 34 per cent by augmentation.
"To unlock generative AI's full potential, banks in India need to adopt a holistic and long-term strategy such that it integrates into their value chains. This will require reimagining traditional processes keeping AI at the core and building a robust foundation of data and digital powered by cloud," said Manoj Singodia, MD and Lead – Financial Services, Accenture, India.
The financial projections indicate that the gains over the next three years will be substantial for the early adopters in the banking space. A rise from 22 per cent to 30 per cent in productivity improvement, a six per cent increase in revenues, and a three per cent increase in return on equity.
Every role in every bank is likely to benefit in some way from generative AI, it states.
"As of now, we are using AI, particularly in the areas where we need to strengthen our operations internally, compliance, and customer service," shared Asheesh Pandey, Executive Director, Bank of Maharashtra.
On the investment side, banks will need to account for a range of costs such as strengthening their core, transformation of their organizational structure, change management, and generative AI tools.
The report saw the MNC use data from the US Bureau of Labor Statistics and the Occupational Information Network to analyze descriptions of 900 occupations across industries and the 19,000 tasks they perform. It delved into the impact of generative AI within the banking sector through a thorough analysis utilizing financial data sourced from 150 of the largest banks globally.
