New report looks at how banks use AI

A new report from Arizent examines how banks view and use artificial intelligence (AI).

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The report, called Unleashing the Power of AI, found that outside of ChatGPT, there is a lack of familiarity with specific generative AI tools among bankers. Only 37 percent of banks are actually in the process of implementing the technology, but most large banks with more than $100 billion in assets are among that 37 percent.

Overall, banks are moving cautiously, the report found, as most are in the early stages of educating themselves about generative AI, forming strategies and piloting small-scale implementations. The focus is on navigating concerns about accuracy, ethics and the potential loss of the personal touch.

“Although there is clear AI adoption happening in the banking industry, there is a need for proper training to harness its full potential,” Janet King, vice president of Arizent Research, said. “We also found that professionals see AI as enhancing their jobs and creating new ones as opposed to replacing headcount.”

It also found that 76 percent of banks surveyed believe AI will redefine the nature of jobs in the industry without eliminating them on a large scale. Further, 36 percent believe AI will produce more job opportunities.

“When asked directly, 76% of professionals believe AI will restructure current job roles without eliminating them,” King said. “We found the hesitancy towards AI adoption comes mostly from professionals of companies with less experience with it.”

This research was conducted online by Arizent, which owns American Banker, in January 2023. Arizent polled 127 banking professionals across job titles and functions. About 28 percent were executives; 34 percent were in upper management; 21 percent were managers; and 17 were non-management staff. The average bank size measured by assets is $81.4 billion.

The full report can be downloaded from the American Banker website.