The recent study conducted by IBM’s Institute for Business Value highlights the challenges faced by CEOs in the banking and financial markets sector as they strive to implement generative AI in their organizations. With insights gathered from over 3,000 CEOs across various industries and countries, including 297 from the BFM sector, the report reveals that 57% of BFM CEOs view generative AI as a key factor in gaining a competitive edge in the industry.
However, CEOs are grappling with cultural and workforce issues in their pursuit of AI adoption. The survey found that 59% of BFM CEOs prioritize cultural change over technical challenges when transitioning to a data-driven company. Additionally, 65% believe that the success of AI implementation hinges more on people’s adoption than on the technology itself. Despite these challenges, 60% of BFM CEOs are pushing for AI adoption at a faster pace, even though some employees may not be fully comfortable with the changes.
Skills also emerged as a key concern for CEOs, with 53% reporting difficulties in filling key technology roles. Furthermore, 50% of BFM CEOs are hiring for roles that did not exist a year ago due to generative AI advancements, reflecting the rapid changes in the workforce. Shanker Ramamurthy, Global Manager at IBM Consulting, emphasized the importance of upskilling programs to address the evolving needs of the financial services sector.
Moreover, the study revealed that 66% of BFM CEOs are willing to accept significant risks for potential productivity gains from automation, showcasing their commitment to maintaining a competitive edge. However, CEOs recognize the importance of trust in innovation, with 83% acknowledging the critical role of transparency in fostering trust with customers and employees.
In response to these findings, John Duigenan, a distinguished engineer at IBM, emphasized the need for financial services leaders to prioritize trustworthy AI that reduces risks and builds trust with stakeholders. The study underscores the urgency for BFM CEOs to navigate the complexities of AI implementation while ensuring that their institutions prioritize skills development, cultural change, and transparency to drive success in the competitive landscape.
In conclusion, the report sheds light on the evolving landscape of the banking and financial markets sector, urging CEOs to strategically navigate the challenges presented by generative AI adoption to maintain competitiveness and build trust with stakeholders.
Article Source
https://www.fierce-network.com/newswire/ibm-banking-and-financial-markets-ceos-are-betting-ai
