The UK banking industry is split on whether Generative AI (GAI) is friend or foe. 40% consider it to be a friend, whereas 36% are in the foe camp. 24% are sat on the fence and said neither. With more convincing percentage is the 66% of UK banking executives that expect GAI “will eventually take their job”.
That is according to a new study by FintechOS, called ‘Generative Artificial Intelligence: The Technology Polarising the Financial Services Industry’. The report explores divisions among UK banks on the expectations, implementation and impact of this technology. However, amidst these often-conflicting views, there is one common consensus. The expectation that GAI will inevitably reshape the workforce and displace jobs.
47% of UK banking institutions are currently investing in GAI research, with 44% already investing in its implementation. Most banking organisations are investing between £1.7m and £4m. 60% of banking executives anticipate an average 20% increase in revenue due to GAI within the next three years. Half of UK bankers believe that GAI will result in job losses at their organisations. There is an expected headcount reduction of 11-20% over the next three years.
How do UK banks feel about GAI?
Generative AI is seen almost equally as friend and foe: The UK banking industry’s perspective on GAI is marked by a mixture of excitement and indifference. Approximately 22% of those surveyed described themselves as “excited”, while 21% claimed they were “curious” about the technology, and 20% instead claimed to be “indifferent”, demonstrating Generative AI divisive nature.
UK bankers cannot seem to agree on what the most pressing concern is about GAI. 26% of respondents expressed disquiet at the reduction in human oversight, with a further 26% apprehensive at the potential for discrimination and bias. At 24%, a lack of human understanding of customer emotions and concerns was another notable worry.
Most UK banks aren’t yet using Generative AI but are investing in its research and implementation. Only 34% of UK banking institutions are using GAI today, but 47% are investing in GAI research, and 44% in the technology’s implementation. Of those currently investing in GAI, 31% are researching how it can help with customer service enquiries, though those currently implementing Generative AI are more focused on using it for lending automation.
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UK banks are investing millions in GAI. 32% of UK banking institutions are currently investing between £1.7m and £4m, with a further 20% investing between £4.1m and £8m.