A recent GFT report highlights that most Canadian banks are focusing their AI investments on consumer-facing tools, yet 68% of ROI is generated from back-office capabilities. Despite 99% of banks emphasizing customer-oriented AI, only 32% report significant returns. The prime areas for AI impact include security, with 45% of banks automating fraud detection and cybersecurity. Current IT budgets allot 35% to AI, expected to rise by 20% in five years, prompting banks to realign their focus for greater productivity.
Retail banks prioritizing customer experience face challenges, as only 18% report measurable results from AI initiatives. While internal operational applications yield better returns, with 58% noting success, hurdles like cybersecurity concerns and implementation costs persist. According to Andre Gagne, CEO of GFT Canada, banks must understand where AI can be most beneficial to achieve operational excellence and enhance competitiveness in a saturated market.
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