A new study by Nvidia into AI deployment in the financial industry shows a remarkable uptake in AI investment in the last 12 months.
AI is seen as an important tool for future success in the financial industry, according to a new study published by Nvidia, which surveyed over 500 C-suite financial executives.
78 percent of financial firms have used machine learning, deep learning or high performance computing to deliver AI-enabled applications.
Fintechs were the most keen on machine learning, with 80 percent of respondents using the technology, while 60 percent of capital market firms use deep learning.
According to the people surveyed, the key benefits to deploying AI in the financial industry are more accurate models, competitive advantage and operational efficiencies. Improved customer experience and reduced cost of ownership were also cited as benefits.
Over 30 percent of financial firms have seen increased annual revenues of 10 percent or more through the use of AI and 28 percent have reduced annual costs because of it.
Another 27 percent of firms surveyed said they have seen between five and 10 percent increase annual revenues. 16 percent said AI had not impacted revenues in any way.
AI’s most prominent use case in the financial industry is fraud detection for transactions and payments. 31 percent of financial firms are investing in this technology in 2022, up from 10 percent in 2021.
Other use cases include conversation AI, algorithmic trading and fraud detection for AML and KYC. All four of these use cases have seen more than 250 percent increases in year-on-year investment interest.
This is a remarkable change in a year, but highlights the financial industry’s shift to adopting AI in more areas of the industry. That said, financial firms are still worried that lack of data, lack of budget and too few data scientists will prevent them from reaching their AI goals.