The banking sector is moving from a phase of experimentation with artificial intelligence to one of strategic implementation, and the pressure on performance has never been greater. Recent data from KPMG shows that up to 70% of global banking leaders intend to increase AI budgets, with nearly 40% planning increases of more than a fifth.
This is a clear sign that the technology has ceased to be a curiosity and has become a key element in the battle for competitiveness.
Cost cutting remains the main driver of investment, as 68% of decision-makers declare. The effects in this area are already visible, with two-thirds of the institutions surveyed reporting savings through AI implementations.
However, generating new revenue is much more difficult. Only 26% of banks saw an increase in revenue as a result of intelligent systems, showing that fully exploiting the potential of AI is still a challenge.
Nevertheless, AI technology is increasingly boldly entering key areas of the banks’ business:
- In credit processes, algorithms improve the assessment of risk and creditworthiness.
- Detecting fraud and suspicious transactions becomes more precise with real-time data analysis.
- Customer service is being automated by chatbots and advanced analytics allow for deeper personalisation of offers.
However, implementations face significant structural barriers. Outdated IT systems and the low quality and inconsistency of operational data are proving to be the biggest inhibitors.
Only a small proportion of banks assess their data assets as fully ready for advanced AI applications.
Another bottleneck is the lack of suitable human resources. The market lacks specialists who combine technological competence with an understanding of the complex regulations of the financial sector and the logic of banking processes.
Industry leaders realise that future competitive advantage will not depend solely on the size of budgets, but on the ability to overcome these internal constraints.
Artificial intelligence that is transparent, compliant and integrated into the strategy of the entire organisation is no longer just an IT tool – it is becoming the foundation of modern banking.
“Banks are increasingly looking at AI as a tool to support not only efficiency but also competitiveness – especially where speed of decision-making, personalisation of services and anticipation of customer needs are important. A change in attitude is also evident – conscious implementation is replacing the experimentation phase. However, to reach the next level of maturity, financial institutions need to better deal with structural challenges, such as inconsistent data or the need to upgrade systems. Industry leaders understand these limitations and see AI as an opportunity for sustainable advantage. Trust in AI, meeting regulatory requirements and making algorithms understandable are as important today as speed of response to change or cost reduction. The future of banking is AI that supports people and is part of the strategy of the entire company, not just a tool of the IT department.” – comments Andrzej Galkowski, Partner, Banking Sector Advisory Leader, Head of AI at KPMG in Poland and Central and Eastern Europe.
