Artificial intelligence (AI) and machine learning will shape the global banking industry over the next five years, according to a survey of industry executives. The research, conducted by the Economist Intelligence Unit in partnership with software company Temenos, found that more than three quarters (77%) of the 305 banking executives questioned thought AI would be a key differentiator between successful and unsuccessful banks in the next few years. In particular, AI was set to improve the customer experience, respondents agreed, with 28% saying this would be a key use for the technology. Two thirds (66%) of respondents said new technologies such as AI would drive the development of the global banking industry over the next five years, compared to 42% who agreed with this when asked last year. Separate research published in February by Juniper reported that AI and similar technologies were "crucial" to fighting fraud as online scams became more advanced.

Customer expectations have always been mending, but this technology tsunami is a completely new phenomenon on the contemporary financing horizon. The Banks are pushed to the wall by extensively mushrooming competitors and rigorously reforming regulations. Amidst the rising fracas, two prime proceeds are certain: the role of these new technologies will increase and the regulations to curb their misuse will get more stringent. The change is exhaustive and will shake and stir all sections of this wide old giant sequoia right from the deepest roots to the crown. The most profound effect, however, can be seen in AI's dismantling of the conventional tradeoffs between service quality and cost.