AI is already changing the way financial firms operate, and that change is only going to accelerate. What single change would financial services executives wish for from one wave of a magic wand? Broadridge posed that question to the C-suite executives participating in its latest Digital Transformation and Next-Gen Tech Study. The result was a clear: more artificial intelligence. AI is already changing the way financial services companies operate, and that transformation is poised to accelerate as firms target further expansion and integration of AI as a top strategic priority.

The financial services sector has long been criticized as being insulated, elitist, and discriminatory. Will artificial intelligence finally open up and "democratize" this industry? It's likely, and will happen a number of ways – by empowering customers, by opening up services to underserved communities, and by increasing the breadth of capabilities companies can offer. While still in the minority, a growing number of financial services executives are bringing in AI as a part of their customer experiences and operations. About half of 500 executives (48%) responding to a survey conducted by Economist Impact and SAS in March 2022 identified advanced data analytics as among the most important technologies to harness, and 34% specifically cited AI and machine learning as their paths to the future.

The financial services sector has long been criticized as being insulated, elitist, and discriminatory. Will artificial intelligence finally open up and "democratize" this industry? It's likely, and will happen a number of ways – by empowering customers, by opening up services to underserved communities, and by increasing the breadth of capabilities companies can offer. While still in the minority, a growing number of financial services executives are bringing in AI as a part of their customer experiences and operations. About half of 500 executives (48%) responding to a survey conducted by Economist Impact and SAS in March 2022 identified advanced data analytics as among the most important technologies to harness, and 34% specifically cited AI and machine learning as their paths to the future.

Nearly three quarters of global financial services executives have admitted they are challenged by the fractured nature and vast amount of data available. The Aite Group surveyed 682 marketing and risk executives at financial institutions across five countries during the third quarter, finding that in the UK alone, 71 per cent of executives said they were challenged by the immense amount of data they have. The study found that the proliferation of artificial intelligence (AI) and machine learning (ML) is expected to continue over the next 24 months, with 68 per cent of UK executives - and three in four globally - considering integrating new analytics technology into their platforms. "Most financial institutions lack a single, cohesive analytics platform," said Tiffani Montez, senior analyst at Aite Group. "Firms may have vastly different data repositories and teams managing analytics functions, often leading to multiple approaches - by line of business, role and channel - across their institutions.

Digital disruption, fintech infiltration, big tech competition, or even new technologies such as artificial intelligence seem daunting. Yet the most serious threat to banks and credit unions lies closer to home but remains more difficult to address -- because it is ingrained in almost every traditional financial institution. Subscribe to The Financial Brand via email for FREE!Financial institutions are being disrupted on almost every front due to digital technologies, new competition, redefined business models and increasing consumer expectations. Increasingly they need to innovate, become more agile, utilize data and advanced analytics to support cost reduction and revenue improvement, and build partnerships with organizations who may also be competitors. So, which of these massive changes pose the greatest risk to the future of banking?

Asia-based senior executives at global companies believe that the impact of artificial intelligence (AI) and robotics on their business performance in Asia will be profound and positive--and will be felt sooner than we may think. Outside of global robotics industry leaders Korea and Japan, most of Asia currently lacks the depth of technical skills and R&D facilities needed to keep pace with AI development. However, China, India, and other large Asian economies generate a copious amount of data, a tremendous "natural resource" that is critical to pushing AI's capabilities forward. Ironically, given the commonly held view that AI will be responsible for disintermediation of jobs at all levels, it is Asia's massive human capital dividend--the billions of constantly Internet-connected workers and consumers--that will propel AI development in the region farther and faster. MIT Technology Review's International Markets division surveyed more than 60 Asia-based senior executives to gather perspective on the impact of AI and robotics on Asia's business landscape.