A report predicts a significant surge in banks’ spending on generative AI (GenAI), reaching $85 billion by 2030 from the current global expenditure of $6 billion in 2024, indicating a remarkable 1,400% growth.
The report by Juniper Research suggests that major banks will embrace generative AI services to enhance user experiences. This adoption is expected to result in more personalized services and improved offerings, all achieved at a lower cost.
“Using AI at the heart of operations will enable banks to provide a differentiated and personalized 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, capable of learning patterns and structures from training data, can generate various forms of content, including text and images.
The study indicates that generative AI will bring significant transformations to banks, facilitating personalized spending insights and simplifying access to customer trends. The report highlights a growing trend where banks are shifting towards an AI-centric strategy, recognizing its importance in effectively competing in a rapidly evolving banking landscape.
“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.
Such investments in generative AI will empower banks with a competitive edge by lowering costs and aligning with evolving user expectations for enhanced experiences.