Generative AI To Boost Bank Revenues By 6% In Next 3 Years: Accenture Report

An Accenture report has projected a significant financial boon for banks adopting generative AI, forecasting an increase in revenues by up to 6 per cent within the next three years. 

The report revealed that banks can enhance employee productivity by up to 30 per cent by implementing AI technologies to streamline numerous language-related tasks. This leap in efficiency could also lead to a substantial 20 per cent increase in operating income and a 300 basis point rise in return on equity. 

The findings show AI’s potential to not only boost performance but also to significantly cut costs, with potential savings between 1 per cent and 2 per cent and a reduction in the cost-to-income ratio by up to 400 basis points.

The report’s analysis extended beyond financial implications, delving into the transformative impact of AI on employment within the banking sector. According to the study, 41 per cent of banking roles, mainly those involving data collection and processing, show a high potential for automation. Meanwhile, 34 per cent of roles that involve significant judgment, such as those of credit analysts and relationship managers, are poised for enhancement through AI tools. An additional 25 per cent of positions, including customer service agents, could equally benefit from both automation and augmentation.

The successful deployment of generative AI technologies in banks correlates strongly with several factors, including robust C-suite backing, focused business cases and a solid data management foundation. Advanced banks are also transitioning to decentralised data meshes from data lakes and investing in secure, AI-enabled cloud infrastructures.

“To unlock generative AI’s full potential, banks in India need to adopt a holistic and long-term strategy such that it integrates into their value chains. This will require reimagining traditional processes keeping AI at the core and building a robust foundation of data and digital powered by cloud,” said Manoj Singodia, MD and Lead – Financial Services, Accenture in India.