Artificial Intelligence in Financial Services (Summit Partners)

Summary

• The paper draws on roundtables with over 100 financial services executives worldwide.p.5
• Approximately 70% of financial services executives believe AI will directly contribute to revenue growth in the coming years.p.5
• A finance worker was deceived by a deepfake video call into transferring $25 million to fraudsters.p.16
• 90% of leaders believe their organization needs significant adjustments or total transformation of its reskilling strategy.p.14
• Misinformation and disinformation ranked first among short-term risks, up 15 positions from the previous year, in a survey of more than 1,500 experts.p.15

Key insights

1. Tasks taking up almost half of financial services employees' time are suited to automation or augmentation by large language models.p.7
2. Financial services is investing in and implementing AI at a faster rate than other industries.p.8
3. Most surveys show the primary objective of AI today is efficiency, as cost-reduction programmes deliver faster measurable results.p.11
4. Over the next decade AI is expected to improve customer experiences and support, including AI agents that act on requests without human intervention.p.12
5. Small language models, retrieval-augmented generation, AI agents and quantum computing are key developments to watch over the next two to three years.p.13
6. Financial services firms will compete with other industries for a limited number of experienced AI technicians.p.14
7. Regulators are inconsistent: the EU AI Act is more comprehensive than the US Executive Order, and MAS has published AI methodologies.p.18
8. Respondents from 49 OECD and non-OECD members gave examples of existing financial rules that apply to AI use.p.19