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The adoption of generative AI (GenAI) in banking is growing, but diverging strategies are emerging among financial institutions. Return on investment becomes a priority, with a focus on productivity and cost reduction. Banks are adopting different approaches depending on the region and operational needs.

Key points:

• Strategic divergence: Only 50% of banks see GenAI as a productivity driver, while 49% are targeting IT cost reduction.
• ROI pressure: The need for a return on investment is driving banks to define clear strategies for GenAI adoption.
• Regional differences: Cost cutting dominates in the US, operational efficiency in Europe, while APAC emphasizes productivity.
• Automation and integration: 51% of banks favor human-AI collaboration, while 28% are targeting full automation.

NTT DATA’s latest global study highlights an acceleration in GenAI adoption in the banking sector, with a growing focus on return on investment (ROI) as a key element for the economic sustainability of implementations. While the technology is seen as a lever for operational transformation, there are divergences in the strategies adopted by banks. In fact, only half of financial institutions (50%) see GenAI as a means to improve productivity and efficiency, while 49% see it as a tool to reduce IT operating expenses.

GenAI’s ability to integrate into every level of the banking ecosystem – from core systems to customer interfaces – is rapidly changing the landscape of the sector. Currently, 58% of organizations have already incorporated this technology into their operations, marking a significant increase compared to 2023, when full adoption was limited to 45%. However, the implementation path is not without obstacles: among them, the need for solid governance, targeted strategies and effective integration with existing infrastructures.

NTT DATA’s analysis shows that the pressure on ROI is particularly felt across the industry, with views differing geographically. In the United States, 59% of banks consider reducing IT budgets a priority, while in Europe only 43% give this the same importance. Similarly, 47% of US financial institutions aim to reduce operating costs, compared to 36% of their European counterparts. Banks in the APAC region, on the other hand, place an even greater emphasis on productivity than other regions.

The approach to GenAI integration varies based on the strategic objectives of individual institutions. 51% of organizations are aiming for a collaborative model between humans and AI, while 47% prefer a hybrid strategy that combines new tools with existing systems. On the other hand, a significant share (28%) aspire to complete process automation, gradually eliminating human intervention. Again, preferences vary by region: in the UK and Europe, around a quarter of banks (25% and 24% respectively) opt for this solution, while in the Americas the percentage rises to 32% and in Japan to 35%.

According to Robb Rasmussen, Head of Global Marketing & Communications at NTT DATA, balancing innovation with financial sustainability will be key to banks’ success in adopting GenAI. Many institutions, still immature in the use of this technology, could benefit from partnerships with specialized providers, allowing them to maximize ROI while ensuring security and regulatory compliance.

The research also analyzes the impact of GenAI on specific segments, such as payments, wealth management and fraud prevention, highlighting how the adoption of tailored strategies can bring competitive advantages in the long term. The study, based on a survey of 810 global banking leaders, provides a detailed overview of the challenges and opportunities that the sector faces in its journey of digital transformation.

The adoption of GenAI is therefore confirmed as an evolving phenomenon, with significant strategic implications for the competitiveness of banks in an increasingly digital and innovation-oriented context.