Artificial intelligence will be an essential business driver for financial services within two years, according to study co-sponsored by EY

EY announced findings from Transforming Paradigms: Global AI in Financial Services Survey, a new global survey assessing the current state of artificial intelligence (AI) adoption by financial services organizations. The survey was led by the Cambridge Centre for Alternative Finance (CCAF) at the University of Cambridge Judge Business School and the World Economic Forum, and co-sponsored by EY and Invesco.

77% anticipate AI will have high business importance in next two years
64% of senior executives expect to be mass adopters of artificial intelligence (AI)

According to senior executives surveyed in the financial services industry, AI is expected to be an essential business driver across the industry, with 77% of respondents anticipating AI to possess high or very high overall importance to their businesses in the next two years.

The study also revealed that 85% of respondents have already implemented AI within their organizations and expect to use AI for new use cases in the coming years. Additionally, nearly two-thirds (64%) expect to use AI for new revenue generation, process automation, risk management, customer service and client acquisitions within two years.

Increased adoption of AI technologies across the financial services industry also comes with challenges, as data quality, access to data and competition for talent are all seen as major obstacles to implementing AI by more than 80% of senior executives. When it comes to respondents who predominantly use autonomous AI, the attitudes shift, with 80% of respondents perceiving trust and user adoption to be the most significant hurdle.

Commenting on the survey findings, Savvas Pentaris, Partner and Head of Financial Services of EY Cyprus said: “The increasing importance of the use of AI in financial services organisations carries major positive transformations as well as challenges. Organisations will have to transform their businesses and rethink their strategy. Thinking out the long-term implications, including how to build customer trust in the new technology must be an integral part of this strategy.”

Charalambos Constantinou, Partner and Head of Consulting of EY Cyprus, also commented: “The financial services industry is being drastically transformed by the widespread adoption of AI. The rate at which organisations adapt by harnessing the full potential of AI, securing the necessary talent and thinking of new ways to create customer and stakeholder value will determine who will lead the industry in the coming years and who will lag behind.”