Banks Are Taking The GenAI Revolution At Their Own Pace
Banks should get it right and not rush no matter what consultants say.
GenAI hype just hit the wall of reality: only 18% of global financial institutions have a well-defined GenAI strategy!
If you’re confused about how long the GenAI revolution will take for banks, you’re not alone!
On one hand, we have reports touting the GenAI revolution as going “full-speed ahead” with breathtaking advances in banking imminent.
On the other hand, reports like this show that most banks, in this case, “the world’s leading financial institutions,” seem wholly unprepared for the revolution even though they acknowledge its inevitability.
This is another example of hype meeting reality.
It's high time that management consultants and big tech firms understand that banks are willing to embrace the future but at their own pace, not the one set for them!
👉TAKEAWAYS
• 85% of financial institutions in our survey believe GenAI will be highly disruptive or transformational.
• But only 2% have a fully developed GenAI talent strategy.
• Just 26% are actively investing a significant proportion of their innovation budgets in GenAI implementation.
• Almost three-quarters of survey respondents are in the early stages of use case development.
• The most progressed GenAI use cases focus on boosting internal productivity, rather than re-shaping critical functions or inventing new business models.
👊STRAIGHT TALK👊
The hype surrounding GenAI has taken on a life of its own, but despite management consultants’ warnings, banks aren’t fully buying it.
This report’s findings of low levels of preparedness in staffing and strategy for GenAI suggest that bankers aren’t buying the need to rush either.
I don’t think it is because banks and bankers are all Luddites since a full 85% grasp that GenAI is transformational.
This report seems to say that banks aren’t going to jump through the hoops set up by either management consultants or big tech and plunge head first into GenAI.
I rarely defend bankers, but in this case, I will.
Banks have a higher social responsibility for trust and privacy than most others and need to get GenAI right, the first time and every time.
That said, I can also agree with those who say that this delay in GenAI roll-out is rooted in banks’ cultural resistance to change.
Banks are ill-equipped to handle innovation, no matter how much they claim otherwise. I wrote a book on this topic!
What this report shows is the gap between GenAI hype and reality.
Banks need to stick to reality, and not be taken in with hype.
Thoughts?
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