According to a survey by UK Finance, almost three-quarters of UK financial services firms are currently conducting pilot projects involving generative AI, primarily for tools aimed at enhancing employee efficiency, like ‘co-pilot’ solutions. Despite the increased exploration of the technology, respondents don’t anticipate a return on investment for more advanced use cases for at least three to five years. The survey, which included 23 companies ranging from international to mid-size banks and non-banking financial services firms, indicates that the most significant opportunities for generative AI are expected in productivity improvement and operational effectiveness rather than customer-facing, revenue-related use cases.
Approximately 75% of the respondents believe they will derive benefits from generative AI, with a focus on productivity and operational efficiency. Interestingly, nearly all firms are already factoring AI risks into their control frameworks, and three out of five have taken action to address the risks associated with generative AI.
Jana Mackintosh, MD of Payments, Innovation, and Resilience at UK Finance, emphasizes the desire for collaboration between financial firms, policymakers, and regulators to develop a long-term, flexible regulatory approach that can adapt to technological changes. This collaboration aims to ensure the financial sector can manage risks while harnessing the competitive advantages of generative AI.
In a related study by FintechOS, three-quarters of financial services executives expect generative AI to eventually replace them. However, opinions on the technology are divided, with 45% viewing it as a ‘friend’ and 40% as a ‘foe.’