41% of global financial services firms have extensively deployed AI

More than four out of ten (41%) of senior decision-makers working for financial services firms worldwide claim their organisation has extensively deployed AI across multiple business functions, while 97% in total say their firm is using AI to some degree.

The figures highlight a split in the AI user base in financial services data management between those businesses who have adopted AI strategically enterprise-wide and the further 56% who are either narrowly deploying it at departmental level or implementing at pilot or proof of concept level. The survey results also show that firms with between 500-5,000 staff are the boldest in implementing AI, with 54% deploying it extensively across different business functions, while just 26% of firms with fewer than 500 staff have done the same.

These were among the main findings of new research commissioned by Alveo, polling senior decision-makers working for financial services firms across the UK, the US and the DACH region (Germany, Austria and Switzerland).

Commenting on the findings, Mark Hepsworth, CEO, Alveo, said: “The use of AI across financial services organisations today is still in its infancy. While a significant proportion of firms have dived in to deploying AI strategically across their entire operations, others have looked to dip their toes in the water at this stage and are waiting to see how the market evolves in the coming months and years. We would expect to see the proportion of firms deploying AI extensively over time to ramp up as the market matures.”

Adoption challenges mentioned differ regionally: in the US the highest scoring response is “Limited availability of skilled AI professionals” whereas in the UK the highest score is for ”Potential for AI bias and discrimination” followed by “Complexities in integrating AI with existing data infrastructure”. Technological limitations far more often cited in DACH. Data quality is seen as more of an issue in UK and US compared to the DACH region.

The US market leads the way in generative AI, with 74% of decision-makers from that region saying they are exploring, or using the technology, while the DACH region trails behind, with just 47% of respondents doing so.

The survey also revealed that more than a third (34%) of decision-makers expect their firms to increase investment in AI for data management by more than 50% over the next two years, while 95% overall expect to see some increase over that period. Asset managers are most bullish here with 40% expecting to see a more than 50% growth in investment in AI for data management during that timeframe, compared to just 19% of asset owners overall.

According to Hepsworth: “It is no surprise that firms are choosing to invest strongly in AI to enhance their data management. Data management is a foundational discipline in financial services, as good and timely data benefits all business functions and is a massive productivity booster.“

More than a third of respondents (34%) see improved data accuracy as the primary benefit of AI in financial services, ahead of operational efficiency (33%). Moreover, 97% of decision-makers anticipate AI will improve data cleansing and operations in their organisation.

“Marrying data management with AI has the potential to significantly enhance these benefits,” added Hepsworth, “but to take advantage, firms will need to draw on the assistance of experts in data management who can help them to navigate the barriers and capitalise on the opportunities.”