Only 13% of banking and insurance industry fully utilising AI solutions

While ethical artificial intelligence (AI) and analytics adoption can add about US$2 trillion (S$2.7 trillion) of value each year to the global banking and insurance industry, a Temasek survey showed that only 13 per cent of the sector uses AI solutions across the bulk of its processes. Financial firms in select markets including Singapore were polled in the survey. About 31 per cent of the companies are still only dipping their toes in AI-driven solutions, while more than half of the respondents fell somewhere in the middle - using AI in some areas, but not harnessing its full potential. The findings mean that, while almost all financial services companies use AI in their processes in some way, they differ in the extent of AI deployment, with an overwhelming 93 per cent of the companies demanding that AI solutions should be trustworthy, said Temasek. The study was conducted by Temasek in March this year, on an anonymous basis, with 39 decision-makers from banks and insurance companies in the United States, Europe, Singapore and Hong Kong.