A new report published by Juniper Research predicts that global spending by banks on generative artificial intelligence will increase exponentially over the next decade. Generative AI platforms, which can create original text, images and other media, are expected to revolutionize banking business models.
According to the research, banks’ total spend on generative AI will reach $85 billion in 2030, a massive jump from $6 billion globally in 2024. Leading banks will implement the AI technology to provide more personalized experiences for customers. For example, generative AI may give users personalized insights about their spending habits or simplify banks’ access to wider customer trends.
“Using AI at the heart of operations will enable banks to provide a differentiated and personalized user experience, while reducing costs,” said Nick Maynard, research co-author at Juniper. “By not making AI a priority today, banks risk losing ground to competitors.”
The report found that generative AI will facilitate significant transformations in banks’ business strategies. Banks that invest early can take time to build high-value applications in areas like customer service and back-office functions. This will likely give first movers a sustained competitive edge. On the other hand, banks that delay adopting generative AI may struggle to keep pace with changing consumer expectations around experience.
Overall, the research indicates that generative AI has immense potential to cut costs and enhance services in the banking sector. Banks are being urged to act now in order to reap these benefits in the coming decade.