Generative AI to boost Indian financial services: Report
Generative artificial intelligence (GenAI) is poised to have a significant impact on the Indian financial services sector, potentially adding $66-$80 billion to the Gross Value Added (GVA) by the year 2030, as per a new report released on Monday.
The latest report by EY India highlights the substantial influence of GenAI on the GVA within the Financial Services sector, ranging from 22 per cent to 26 per cent. The survey participants emphasized two key areas of focus – customer service and cost reduction.
The report also indicated that 61 per cent of respondents in the financial services sector anticipate a massive impact on the entire value chain, making it more efficient and responsive to market dynamics.
According to Pratik Shah, Partner and Financial Services Consulting Leader, EY India, “GenAI promises to revolutionise various facets of financial services, from customer acquisition to service and collections. Globally, financial institutions foresee a timeframe of 5 to 10 years to fully leverage the potential of Gen AI. In alignment with this, Indian financial services organisations are proactively forming specialised cross-functional teams and allocating dedicated funds for Gen AI deployments.”
The report noted that 94 per cent of respondents believe that GenAI would most affect ‘customer experience’, 78 per cent said ‘cost reduction’, and 61 per cent highlighted its impact on ‘driving innovation’.
Abizer Diwanji, Head – Financial Services, EY India, emphasized the importance of promoting AI awareness and cultivating a culture that increases its potential for positive impact while curbing misuse.
When it comes to executing their GenAI strategy, 83 per cent of respondents expressed a preference for partnering with external tech providers, whereas 67 per cent indicated confidence in developing LLMs/in-house capabilities, according to the report.
The potential of GenAI to enhance financial services in India is evident, and as the industry gears up for this transformation, it is essential to recognize its impact and prepare for a future with artificial intelligence at the forefront of innovation.
–IANS
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