Financial Services Leaders Grapple with Accuracy and Security Concerns in Generative AI Adoption
July 30 2024 - 9:00AM
UK Regulatory
Financial Services Leaders Grapple with Accuracy and Security
Concerns in Generative AI Adoption
Despite significant concerns with the accuracy and
security of AI, 70% of financial services leaders plan to increase
their AI spend in 2024
- Financial services organizations only deployed 1 in 4 of the AI
initiatives they had planned for the year
- Despite one of the highest rates of planned increased spending
across industries, 34% of financial services leaders feel like they
are falling behind their peers in AI adoption
- One of the biggest concerns FinServ has regarding AI is data
security (45%), followed by accuracy (43%) and cost (40%)
SAN FRANCISCO, July 30, 2024 (GLOBE NEWSWIRE) -- Lucidworks, a
leader in search and total AI solutions, today released new
financial services findings from its second annual Generative
AI Global Benchmark Study. The study gathered input from over
2,500 leaders involved in AI technology decision-making worldwide.
The report explores key areas of generative AI investment and
organizations' progress in adopting generative AI.
Close to 50% of financial services leaders had a positive view
of AI in 2023. Despite this initial excitement, the implementation
of planned initiatives in 2024 has been sluggish. Only one in four
AI projects have been deployed, similar to many of the other
industries surveyed. In 2023, the most common expected impact of
Gen AI for financial services was business ops improvement. The
majority of deployed initiatives followed suit in 2024 and were
primarily focused on G&A cost reduction. However, the industry
reported below average cost and revenue benefits.
Financial services mirror global industries with high concerns
around data security (45%) and accuracy (43%). Across the board,
concerns around security, response accuracy, and costs have forced
most businesses to slow down their planned initiatives and be more
strategic about the balance between cost and benefit. Security
worries have tripled, accuracy concerns have grown fivefold, and
transparency issues have quadrupled since 2023.
The 2024 Generative AI Global Benchmark Study also
includes the following findings:
- Investment Slowdown:
Global AI spending plans are down sharply, with only 63% planning
increases (vs. 93% last year). USA-based organizations remain above
average with 69% planning to increase AI spend across all
industries.
- Slow Progress: Delayed deployment and low
success rates are commonplace with only 25% of planned projects
fully implemented across all industries. This lag is stalling
anticipated ROI, with 42% of companies yet to see significant
benefits from generative AI initiatives.
- Spending Flattens: Across all organizations,
36% of leaders plan to keep spending flat, compared to only 6% in
last year’s survey.
- China’s Sharp Decline: Only 49% of Chinese
leaders plan to increase AI spending in 2024, a massive drop from
100% in 2023.
- Commercial LLMs Dominate: Nearly eight in 10
companies use commercial LLMs and 21% have opted for open source
only.
- Competitive
Concerns: A third of business leaders feel like they’re
falling behind competitors despite almost everyone struggling to
implement this new technology.
“Financial services leaders have recognized the immense
potential of generative AI year over year. However, concerns around
data security and accuracy are holding back deployment,” said Mike
Sinoway, CEO, Lucidworks. “A responsible AI-powered search solution
must balance personalization with stringent data protection,
adhering to regulations and prioritizing client trust. As models
specialize to the industry and organizations partner with search
experts to build AI strategies, we anticipate financial services
organizations will see more cost and revenue benefits in the near
future.”
Download the complete 2024 Generative AI Global Benchmark
Study and accompanying financial services-focused findings
today. Learn more about Lucidworks at Lucidworks.com.
About Lucidworks
Lucidworks clients are more than 2.5x more likely to
successfully deploy generative AI initiatives than their peers. The
world's largest brands including Crate & Barrel, Lenovo, and
Red Hat rely on Lucidworks' suite of products to power commerce,
customer service, and workplace applications that delight customers
and empower employees. Contact us today to build your AI success
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