Accenture’s report suggests that banks stand to significantly enhance employee productivity and boost revenues through the integration of generative AI (GenAI) into their operations. By examining publicly available employee data, Accenture estimated the potential impact of generative AI on various banking tasks. The analysis encompassed over 150 major banks globally, including both public and private sector banks in India, over a three-year period.
According to the findings, banks that swiftly implement and scale generative AI across their organizations could witness a substantial increase in revenues of up to 600 basis points (bps) within three years. By effectively adopting and expanding the use of generative AI, banks could improve employee productivity by as much as 30%, particularly by streamlining language-related tasks. Moreover, operating income could see a surge of around 20%, while return on equity levels may rise by 300 bps. The technology could also contribute to cost savings of 1-2% and lead to a decline in cost-to-income ratios by up to 400 bps.
Accenture emphasizes the need for banks to optimize the utilization of generative AI applications, upgrade the skills of existing employees, and attract specialized AI and data talent to support the scaling and operationalization of the technology. The report highlights that 41% of all banking occupations have a high potential for automation. Manoj Singodia, MD and Lead-Financial Services at Accenture in India, stresses the importance for Indian banks to adopt a comprehensive and long-term strategy that integrates generative AI into their value chains. This entails reimagining traditional processes with AI at the core and establishing a robust foundation of data and digital capabilities, powered by cloud technology.
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