Generative AI Spending By Banks to Reach $85 Billion by 2030: Juniper Research Report
According to a report released by Juniper Research, banks worldwide are projected to spend $85 billion on generative artificial intelligence (AI) by 2030. This represents an astonishing increase of over 1,400% from the $6 billion spent globally in 2024. The report highlights the growing trend of leading banks adopting generative AI services to enhance user experiences, ultimately enabling them to offer more personalized and compelling services at a reduced cost.
Generative AI has the potential to revolutionize the banking industry by providing personalized spending insights and easier access to customer trends. The report emphasizes that banks will increasingly shift towards an AI-centric strategy as these models are essential for effective competition in a rapidly changing banking environment.
Generative AI platforms have the ability to learn patterns and structures from training data, enabling them to create text, images, and other media. Common applications of generative AI in the banking sector include chat and voice bots, customer onboarding, fraud detection, investment advice, financial forecasting, personalized marketing campaigns, portfolio management, servicing, spending insights, and transaction processing.
The report emphasizes the importance for banks to invest in generative AI now to ensure they have sufficient time to build high-value use cases, particularly within customer services and back-office roles. This investment will provide banks with a competitive advantage as their costs decrease and user expectations evolve.
Research co-author Nick Maynard highlights the significance of using AI at the core of banking operations. By doing so, banks can deliver a differentiated and personalized user experience while simultaneously reducing costs. Maynard warns that failing to prioritize AI today puts banks at risk of losing ground to their competitors.
The potential benefits of generative AI for banks are substantial. It enables them to offer tailored services that meet the unique needs of individual customers, ultimately enhancing customer satisfaction and loyalty. Additionally, generative AI streamlines various banking processes such as fraud detection and portfolio management, leading to greater efficiency and accuracy.
As banks strive to stay ahead in an increasingly competitive industry, the adoption of generative AI is seen as a vital step. By embracing this technology, banks can position themselves as industry leaders and gain a competitive edge. The report concludes that generative AI will play a pivotal role in shaping the future of the banking sector, empowering banks to deliver exceptional user experiences while optimizing their operations.
Overall, the projected surge in generative AI spending by banks demonstrates the industry’s recognition of the immense potential of this technology. With its ability to offer personalized services, improve operational efficiency, and reduce costs, generative AI is poised to revolutionize the banking landscape in the coming years.
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