In a dynamic banking environment, banks are seeking to differentiate themselves and gain a competitive advantage. Generative Artificial Intelligence (GenAI) is transforming the banking sector, providing innovative solutions that optimise efficiency, enhance security, and increase customer satisfaction.
As the banking industry increasingly moves towards digitisation, the adoption of advanced AI technologies becomes crucial. GenAI, with its ability to synthesise and generate content, offers unparalleled opportunities to automate complex processes, provide personalised customer experiences, and strengthen security measures.
In PwC latest 27th Annual CEO Survey indicated that leaders expect technology including GenAI and Machine Learning (ML) to be the centre of optimising costs, creating new revenue streams and improving the customer experience within their organisations. Middle East CEOs are also optimistic about the financial impact of GenAI, with 63% expecting the adoption of it in their organisation to increase revenue, while 62% said it would increase profitability. In the GCC, enthusiasm is even higher with two thirds expecting revenue increases and a similar number expecting profitability increases. While these statistics cover various industries, the banking sector specifically has been heavily reliant on technology since its inception.
Financial services CEOs in the region have acknowledged the necessity to evolve their business models to ensure sustainable outcomes for stakeholders and society, especially in the face of challenges, such as climate change and the rise of GenAI.
Findings of the 27th Annual CEO Survey: Financial Services findings have indicated that almost three-quarters of FS CEOs in the region (75%) expect GenAI to improve the quality of their products and services over the next year, significantly higher than 59% of global FS peers. An equally significant number of FS leaders in the region (69%) believe that GenAI will enhance their company’s ability to build trust with stakeholders, compared to less than half of their global peers (47%).
AI systems can generate content, predict outcomes, automate complex processes, and much more, potentially transforming how banks operate, engage with customers, and manage data. However, alongside these benefits come substantial cybersecurity risks that must be managed to protect sensitive financial information and maintain trust in banking institutions.
Read more at https://www.pwc.com/m1/en/publications/leveraging-generative-ai-in-banking.html