In a groundbreaking analysis, Fifty One Degrees has determined that an overwhelming 84.6% of banking, insurance, and FinTech operations could see significant improvements from AI technology adoption, potentially boosting the sector’s economic output by £41.7bn.
- 8 in 10 tasks will be made more efficient by deploying AI, whereas just over half of tasks will be higher quality where AI is used.
- GenerativeAI (GenAI) is the most powerful AI technology for financial services, and GenAI Assistants would benefit 74.9% of tasks.
- The greatest efficiency gains will be for internally focused tasks and processes, as opposed to customer-facing tasks, with an efficiency gain of 41% for internal tasks, and 34% for customer-facing.
- GenAI is expected to increase economic output in financial services by up to 15%, resulting in an additional £41.7bn of additional output from the sector.
Insights from Fifty One Degrees:
On 19 March 2024, AI consultant firm Fifty One Degrees unveiled a research study indicating the vast potential of generative AI technology within financial services firms.
This thorough investigation analysed 311 tasks across fourteen different functions within the financial industry, assessing the suitability and potential benefits of AI technologies for each task.
GenAI’s Transformative Impact in the Financial Realm
The findings suggest that GenAI Assistants, tailored to assist team members in specific functional areas, could positively influence three-quarters of tasks in financial and insurance companies. These assistants, trained on specific organisational procedures and regulations, are particularly valuable in roles involving substantial processing of natural language data, such as Compliance and Legal, potentially leading to workflow automation or enhancements.
Moreover, the study identifies other AI tools, such as AI-enabled training and legal aids, powered by Generative AI and Large Language Models, as significant, affecting 39% of activities.
Broader Implications and Economic Prospects
The research points to significant benefits for departments such as Analytics, Technology, Customer Services, and Underwriting through the application of GenAI, enhancing both efficiency and work quality. Although departments like Compliance and Legal are likely to see notable efficiency gains, the rate of quality improvement might not parallel this growth.
The economic implications of GenAI adoption in the banking and financial services industry are substantial, with a potential increase in economic output of 15%, thereby generating an impressive £41.7bn in additional sector value.
Perspective from Fifty One Degrees’ Leadership
