Generative AI (GenAI) is poised to improve productivity levels of Indian financial services by 34 to 38 per cent by 2030 and up to 46 per cent, specifically for banking operations, said a EY report.
The report titled 'How much productivity can GenAI unlock in India? The AIdea of India: 2025' emphasised that GenAI) is reshaping India's financial services landscape, driving significant advancements in customer engagement, operational efficiency, and risk assessment.
It said the survey canvassed more than 125 C-suite executives across India. They represent diverse sectors, including financial services, retail, healthcare, life sciences, media and entertainment, technology, automotive, industrials and energy.
According to the study, 74 per cent of financial firms have initiated proof-of-concept projects, and 11 per cent have moved to production-level deployments.
"Investment in GenAI is also increasing, with 42 per cent of organisations actively allocating budgets toward AI initiatives. They are rapidly adopting GenAI across key areas such as voice bots, email automation, business intelligence, and workflow automation," the report said.
Customer service is the top priority, with 68 per cent of firms prioritising it for GenAI implementation, followed by operations (47 per cent), underwriting (32 per cent), sales (26 per cent), and IT (21 per cent).
These investments are already delivering measurable results: 63 per cent have seen improved customer satisfaction levels, while 58 per cent of firms report cost reductions, the study said.
"The financial services industry has moved beyond innovation pilots to real-world implementation in 2024-25. Firms are integrating GenAI with core banking systems, including CRM, loan origination, card management platforms, among other areas," said Pratik Shah, Partner and National Leader Financial Services, EY India.
These efforts, Shah added, have led to a significant reduction in operational costs, with AI-driven solutions slashing the cost per unit of normal business activities to as low as 1/10th of traditional manual processes.
The EY study, which analysed over 700 roles in the sector (more than 300 in banking and 400 in insurance) projects that GenAI will drive a 34 per cent to 38 per cent productivity improvement by 2030, paving the way for growth and operational transformation in the industry.
It is poised to significantly impact banking operations, customer service, and credit and collections, the report said.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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