TLDR: Accenture’s global banking lead, Michael Abbott, predicts that generative AI will fundamentally change 75-80% of banking jobs, shifting the focus towards relationships and trust while improving efficiency in tasks like KYC checks and boosting revenue through tailored services. The technology is seen as a tool to enhance productivity and create new opportunities rather than eliminate roles.
The banking and finance sectors are on the cusp of a significant transformation, driven by the rapid adoption of generative artificial intelligence (Gen AI). According to Michael Abbott, Accenture’s global banking lead, this technological shift will not lead to a widespread elimination of jobs but will instead ‘rewire’ the nature of nearly every role in banking. Abbott forecasts that 75% to 80% of banking jobs will be reshaped by Gen AI, emphasizing a renewed focus on human elements such as relationships, trust, and deposits.
Gen AI’s impact is expected to be profound, particularly in enhancing efficiency. For instance, the technology can significantly streamline Know Your Customer (KYC) checks, a process that currently costs Singaporean banks millions annually. Fenergo notes that some of the largest banks in Singapore spend an average of US$300 million (S$384.5 million) per year on onboarding and KYC operations, making it a prime area for AI-driven benefits. By automating such tasks, AI frees up human capital to concentrate on more value-added activities.
Beyond efficiency, Gen AI is also poised to unlock new revenue streams for financial institutions. Abbott highlights that leading banks are reinvesting the time saved by AI into productivity, enabling them to analyze customer data more effectively and offer highly tailored services. This could eventually lead to personalized banking experiences delivered through advanced chatbots.
Accenture’s research indicates that banking is likely to be more profoundly impacted by Gen AI than any other industry, with the potential to boost productivity by up to 30%. While some reports, like those from Bloomberg Intelligence and Citigroup, have projected significant job displacements due to AI, Abbott and Accenture’s perspective leans towards a transformation of work rather than outright elimination. An Accenture Pulse of Change survey revealed that two-thirds (66%) of bank employees already use Gen AI tools, though there’s a perceived gap in foundational training between employees and executives.
The key to successful AI integration, according to Emily Prince, group head of analytics at the London Stock Exchange Group (LSEG), is not necessarily expertise in AI but rather curiosity and a foundational understanding of mathematics, physics, and engineering. The technology’s accessibility means that once deployed, its effective use hinges on an individual’s specialized knowledge. Abbott cited an example of an insurance company that doubled its business after adopting Gen AI, which handled underwriting requests, allowing human underwriters to focus on complex tasks.
Also Read:
- Generative AI: A Catalyst for Enterprise Innovation, Efficiency, and Revenue Growth
- Generative AI Transforms Insurance Sector, Industry Divided on Impact
Ultimately, the future of banking in the age of AI will require a culture that embraces collaboration, innovation, and continuous learning, moving beyond proofs of concept to scale AI for tangible value.
