Gen AI will significantly affect the entire value chain, according to 61% of respondents in the financial services industry.
The financial services industry is the one where generative AI has the largest influence on gross value added (GVA), with a range of 22 to 26 percent. As a result, a study by EY suggests that by 2030, GenAI might potentially add $66–80 billion to the GVA.
According to at least 61% of respondents in the financial services industry, the entire value chain will be significantly impacted by Gen AI, becoming more responsive to market dynamics and efficiency.
78% of survey respondents have either implemented the technology in at least one use case or have plans to pilot it over the next 12 months, indicating that financial firms have recognized the transformative potential of generative artificial intelligence (Gen AI). The report is titled “The AIdea of India: Generative AI’s potential to accelerate India’s digital transformation.”
“A revolutionary”
“GenAI is a game-changer, fostering innovation and competitiveness in India’s fast-evolving financial services sector,” stated Abizer Diwanji, Head of Financial Services, EY India. Growth, efficiency, and improved client experiences are what it offers. However, responsible adoption is essential to guaranteeing moral data usage and openness with clients. Financial institutions need to raise awareness of AI and foster a culture that limits its potential harm while maximizing its benefits.
Important areas of attention
Customer service and cost-cutting were the two main topics that the majority of survey respondents indicated they were concentrating on. Businesses were asked which aspects of their operations they thought GenAI would have the biggest influence on, and the majority responded with “customer experience” (94%), “cost reduction” (78%), and “driving innovation” (61%).
Businesses are making investments in fields that have clear, attainable rewards. Organizations must carefully consider their implementation strategy after ranking the use cases.
When asked how they planned to implement their GenAI strategy, 83% of respondents stated they intended to work with outside tech companies, while 67% said they were confident in building LLMs and internal capabilities. Although the latter would enable them to guarantee customized solutions, CXOs pointed out that there might be an execution risk, involving the availability of talent.
