NVIDIA REPORT: AI To The Moon In Financial Services
Are bank AI investments robbing Peter to pay Paul?
NVIDIA's fifth State of AI in Financial Services report shows that among the 600 global financial services (finserv) professionals surveyed AI is booming and stands out as a pivotal technology.
While this report may seem self-serving, as NVIDIA is a major provider of AI chips, they aren't wrong or exaggerating the survey's outcome.
AI adoption is booming in finserv, with 98% of management saying they will further increase AI spending in 2025.
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Compared with last year, finserv is putting its money where its mouth is, with 50% fewer respondents reporting a lack of AI budget.
This makes perfect sense as over half of companies view AI as crucial to their future success.
While I peddle the gospel that AI will transform finserv for the better on these pages every week, I can't help but wonder if this boom can last.
Any market flying so high and fast has got to brace itself for leaner days to come.
As to banks tying their futures to AI, they're not wrong. Still, they must also sustain other critical efforts such as open banking, mobile apps, payments, or embedded finance.
Banks aren't known for being such expert implementors of innovation that they will likely handle so many technologies at once.
I can't help but wonder if showering AI with money is a case of "robbing Peter to pay Paul."
👉Nvidia's Four Big Takeaways:
🔹 Maturation of AI use cases: While firms continue to expand the number of generative AI use cases under evaluation, the penetration rates for a few key use cases indicates maturation in exploration and use of AI.
🔹 Predominance of data analytics and generative AI: Data analytics remains the top workload, with generative AI showing significant growth, becoming the second-most utilized workload.
🔹 Transformational impact of AI: A significant portion of respondents view AI and generative AI as transformational, with increased integration across various business functions.
🔹 Diversification of AI benefits: More than one-third of respondents cited operational efficiencies as a top benefit of AI, while competitive advantage and new business opportunities were also recognized as key benefits.
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