Companies that have heavily invested in digital transformation and developed the innovation cultures and talent capabilities essential for growth are now outpacing those that must catch up to remain competitive. For instance, 44% of leading firms are making moderate to significant investments in Generative AI, which is more than double the investment level of their non-leading counterparts.
Firms are prioritizing investments in core technologies
Executives have made significant investments in migrating core IT platforms to the cloud to enable ongoing innovation and establish an integrated data platform accessible across all business departments. To protect their platforms and data, they have implemented advanced cybersecurity technologies and processes.
Customer obsession
Customer centricity is essential for maintaining relevance, increasing loyalty, and capturing market share in a rapidly changing landscape.
To meet the rapidly changing expectations and behaviors of customers, especially as new generations emerge, firms are realizing the necessity of swift action and innovation in their products, services, and experiences. When asked how they would use a magic wand to accelerate their digital transformation efforts, most executives expressed a desire for a crystal ball to better anticipate customer needs.
Unleashing AI
Over 95% of firms are investing in AI, prioritizing client-facing front-office functions like customer interaction and research. They are also focusing on data management systems to support these activities, along with risk, fraud, and data security measures to protect them.
GenAI is capturing both attention and investment
Since the emergence of the GenAI platform ChatGPT in late 2022, companies have rapidly invested in use cases and skill development. They are deploying AI chatbots and next-gen tools to enhance and automate employee tasks in customer service, portfolio construction, software development, and compliance and risk management.
Among digital leaders, 44% are making moderate to significant investments in GenAI, which is more than double the percentage of non-leaders. The largest organizations in our survey, those with assets under management (AUM) exceeding $250 billion, are the most likely to embrace GenAI due to their more advanced data platforms and greater resources.
How financial firms are using GenAI
Organizations are already utilizing the large language models (LLMs) powering GenAI for a variety of tasks where generating insights is impactful, including:
- Responding to client inquiries and providing customer support
- Educating and training employees about investment products
- Enhancing data-driven decision-making and analysis