A recent Accenture research indicates that banks embracing generative AI swiftly could witness a remarkable revenue surge of up to 600 basis points (bps) within three years.

Drawing insights from publicly accessible employee data, Accenture conducted an in-depth analysis of banking tasks to gauge the potential impact of generative AI on employee productivity across various functions. Utilizing financial data from over 150 large banks worldwide, including both public and private sector entities in India, the research modeled the financial outcomes over a three-year period.

The analysis suggests that banks effectively implementing and scaling generative AI stand to enhance employee productivity by up to 30%, particularly by streamlining language-related tasks. This optimization could potentially drive a 20% increase in operating income, accompanied by a 300 bps rise in return on equity. Moreover, the technology’s efficiency enhancements could yield cost savings ranging from 1% to 2%, with cost-to-income ratios witnessing a decline by up to 400 bps.

In a bid to reinvent talent and work methodologies, the report delves into the evolution of the 20 largest roles across banking institutions, categorized into three distinct groups:

• Roles with a high potential for automation: Around 41% of banking occupations, largely centered on data collection and processing, stand ripe for automation. Generative AI could significantly amplify efficiency, accuracy, and cost reduction in these roles, easing employees’ burdensome tasks.
• Roles with a high potential for augmentation: Approximately 34% of bank employees engaged in roles demanding substantial judgement, such as credit analysts and relationship managers, could leverage generative AI tools to enhance their capabilities.
• Roles poised to benefit equally from automation and augmentation: About 25% of bank employees, including customer service agents, could experience dual benefits from both automation and augmentation, particularly in tasks related to inquiries, service explanations, and documentation preparation.

To maximize the potential of generative AI, banks must optimize its usage, upskill existing talent, and attract specialized AI and data professionals to support technology scaling and operationalization.

The roadmap for enterprise-wide adoption highlights common attributes among banks that have achieved early success with generative AI, including robust board-level and C-suite sponsorship, a strong data foundation, and secure AI-enabled cloud infrastructure.

Manoj Singodia, MD and Lead – Financial Services, Accenture in India, emphasized the importance of a comprehensive and long-term strategy for unlocking generative AI’s full potential within the Indian banking sector, advocating for a paradigm shift in traditional processes to integrate AI into the core, supported by robust data and digital infrastructure powered by the cloud.