By Saket Newaskar, Director & Head of Transformation, Expleo
AI is reshaping enterprises across every sector, transforming how businesses deliver value, explore uncharted territories, and stay competitive in a rapidly changing world. In the financial sector, the AI spend is projected to surge from $35 billion in 2023 to $97 billion in 2027 (Statista), making it clear that AI is no longer a niche investment.
With AI, banking is no longer just about managing money – it’s about managing experiences, expectations, and efficiencies. At Expleo, our recent AI report —”Integrating AI: Navigating the next wave of business,” found that 88% of decision-makers in the BFSI sector acknowledge AI as a critical component of their ongoing business transformation. We’re at the heart of this shift, helping our clients realise the full potential of AI to maximise value, minimise costs, and achieve ZeroOps KPIs.
AI-powered personalisation for improved CX
Today, good service isn’t enough – personalisation at scale is the new benchmark. AI is enabling this in ways unimaginable a decade ago. Think of chatbots that converse in regional languages—essential in linguistically diverse markets like India—or AI-driven recommendation engines that analyse customer behaviour to suggest personalised financial products, from better loans to tailored investment options. These tailored AI-infused solutions make interactions meaningful, ensuring customers feel valued and understood.
In a market where customer loyalty is harder to earn than ever, retention is the real value, and offering 24/7 hyper-personalised services is the critical differentiator that keeps customers coming back. If your bank isn’t delivering this seamless, always-on experience, someone else will.
Automation with intelligence: The backbone of ZeroOps
In the back office, AI is rapidly becoming the Goliath of operational efficiency, automating complex processes once bogged down by human error and inefficiency. Take anti-money laundering (AML), for instance. Traditional methods are reactive, catching issues after the damage is done. AI’s predictive analysis and real-time monitoring spot suspicious activities before they escalate, reducing false positives and slashing the time and costs associated with manual review. That’s operational excellence.
AI handling the grunt work is paving the way for a scenario where banking operations are so fine-tuned, they require minimal human intervention. The result? Significant reductions in operational costs and a leap toward achieving ZeroOps KPIs.
Scaling AI: The real challenge
While AI-enabled advanced data analytics provide banks with tools to understand trends better, assess risks, and identify growth opportunities, the move from isolated AI applications to industrialised deployment is where most stumble. Recent studies reveal that AI project failure rates hover around 80% (HBR). Scaling AI isn’t about rolling out new tech; it’s about co-creation—about having the right partners, the right talent, and an AI-first mindset.
To fully leverage AI, banks must embrace it as a strategic asset that complements human expertise. Yes, fast-tracking innovation and digitalisation are crucial, but they must be done by responsible AI principles, ensuring ethical, secure, and transparent deployment.
Leading with Impact
The consensus is clear – AI is here to stay, and the future of banking will be shaped by those who can navigate its complexities with agility and foresight. Unlocking AI’s full potential requires a holistic strategy that moves beyond isolated proofs of concept to scaled, sustainable, responsible deployments aligned with business goals.
The AI revolution is not an either/or situation. As Mike Mayo, Managing Director and Head of US Large Cap Bank Research at Wells Fargo, aptly put it, “If you’re a bank and don’t have an AI strategy, then you don’t have a strategy.” Banking in 2050 will be unrecognisable from today, with AI driving everything from cashless transactions to embedded financial services. The golden age of banking is here, powered by AI. The question now is: Are you ready to embrace it?