Accenture, an IT company, has emphasized the potential benefits of incorporating generative AI (GenAI) into banking operations. According to their research, banks could experience a substantial increase in employee productivity and revenue growth by implementing this technology.
The study by Accenture revealed that banks moving quickly to integrate generative AI across their organizations could see a revenue increase of up to 600 basis points (bps) within three years. By effectively adopting and scaling generative AI, banks have the opportunity to boost employee productivity by up to 30%, particularly through the streamlining of language-related tasks.
In addition to the potential revenue growth, banks could witness an increase in operating income by around 20% and a rise in return on equity levels by 300 bps. The adoption of generative AI may also lead to cost savings of 1-2%, with cost-to-income ratios potentially declining by up to 400 bps.
Accenture highlighted the importance of optimizing the usage of generative AI applications and upskilling existing employees in order to fully maximize the technology’s benefits. The report pointed out that 41% of banking occupations have a high potential for automation, emphasizing the need for banks to adapt and evolve in the face of technological advancements.
To unlock the full potential of generative AI, Indian banks are urged to adopt a holistic and long-term strategy that integrates the technology into their value chains. This entails reimagining traditional processes with AI at the core, as well as establishing a strong foundation of data and digital capabilities powered by cloud technology.
In conclusion, the integration of generative AI has the potential to revolutionize banking operations, enhance employee productivity, and drive significant revenue growth. It is essential for banks to embrace this technology, optimize its utilization, and invest in upskilling their workforce to stay competitive in an increasingly digital world.
