NVIDIA's survey highlights companies' view of AI

The financial services sector is reaching an important milestone with AI as organisations transition from testing and experimentation to AI implementation and having tangible business outcomes. 

NVIDIA's fifth annual State of AI in Financial Services report reveals that financial institutions have simplified their AI initiatives to concentrate on essential applications, indicating an increase in AI capabilities and expertise.

Companies investing in AI are experiencing benefits, with nearly 70% reporting a revenue increase of 5% or more, and over 60% noting cost reductions of at least 5%. Almost a quarter plan to leverage AI for new business opportunities. The highest ROI from generative AI comes from trading and portfolio optimisation (25%), followed by customer experience and engagement (21%), underscoring AI's transformative impact on business and financial success.

Companies use AI for better operational efficiency

According to NVIDIA, half of management respondents have implemented generative AI services, while 28% are planning to do so soon. A 50% drop in those lacking an AI budget indicates an increased commitment to AI development. Challenges in early AI exploration are declining, with fewer companies facing data issues and privacy concerns. Improved expertise and data management enable financial services firms to leverage AI for better operational efficiency, security, and innovation.

Generative AI is now the second-most-used AI workload in financial services, significantly upgrading customer experience and optimising trading and portfolio management. Its use in customer experience, especially through chatbots and virtual assistants, has surged from 25% to 60%, driven by advancements in technology. Over half of financial professionals are leveraging generative AI for tasks like document processing and report generation. Additionally, financial institutions can benefit from agentic AI, which uses large data sets and reasoning to solve complex problems, improving risk management, compliance, investment strategies, and personalised customer services.

Moreover, NVIDIA underlined that companies recognise AI's potential and are establishing AI factories—accelerated computing platforms with comprehensive AI software—through cloud providers or on-site. This focus on high-value AI use cases aims to improve customer service, increase revenue, and lower costs. By leveraging advanced infrastructure, companies can efficiently develop and deploy AI models, aiming for significant returns on investment, particularly in the financial sector, which seeks to increase efficiency and innovation.