A recent survey conducted by Google Cloud and National Research Group found that 63% of financial services companies have moved their GenAI use cases into production and are witnessing a positive ROI.
Traditionally, the financial services domain has been rich in data – but poor with data-driven insights. With the adoption of GenAI, this is beginning to change. That said, the Google Cloud survey also found that 35% of these financial services companies are still evaluating or testing GenAI use cases.
What’s differentiating the successful adopters of GenAI from the laggards? Let’s take a deeper dive.
6 factors driving a successful GenAI adoption
Successful financial services companies do not deploy any “magic wand” when implementing Generative AI solutions. Here are 6 common factors that make them successful:
- Early adoption
Early adopters of GenAI have a competitive advantage over those companies that have yet to embrace this transformational technology. The Google Cloud survey found that 9 out of 10 financial firms running GenAI in production have seen their revenues grow by 6% or more.
At the same time, 50% of financial companies have managed to double their employee productivity, while 66% have improved the user experience.
These numbers are not simply “one-time” gains. Financial companies are compounding the benefits of GenAI in other business areas, including:
- Operating margins (50%)
- Employee satisfaction (45%)
- New revenue streams (43%)
- Strong data foundation
Financial services cannot successfully initiate any AI project without a robust data foundation. Through data and infrastructure modernization, these companies have ensured that their GenAI models are trained on high-quality and relevant data. This ensures that GenAI models produce the right output for their particular use case.
- Alignment with business strategy
According to Oliver Parker of Google Cloud, “Generative AI is not just a technological innovation; it’s a strategic differentiator.” 76% of organizations that are fully utilizing GenAI have aligned their AI strategies with their business goals. This is higher when compared to 69% for companies that are not fully invested in GenAI technology.
These companies also have complete support from their C-level executives when it comes to implementing Generative AI projects. With strong leadership support, financial companies are more efficient at resource allocation and decision-making.
- Focus on relevant use cases
Google Cloud’s “ROI of Generative AI” report found that successful companies are witnessing ROI of GenAI technology in use cases like:
- Customer service (34%)
- 33% expect an ROI within the next year.
- Sales and marketing (33%)
- 30% expect an ROI within the next year.
- Employee productivity (34%)
- 30% expect an ROI within the next year.
By transforming these business functions, financial companies are also benefiting from immediate business value. By investing in customer-centric and operational use cases, companies can also get “quick wins” and justify their next round of investment.
- Faster time-to-market
According to the findings of the Google Cloud survey, 78% of financial service firms successfully deployed their GenAI use case in the production environment – within 6 months. This means successful companies can transform an “idea” into production quickly, thus allowing them to meet their business objectives and gain a competitive edge in the market.
- Regulatory compliance
Among the highly regulated industries, financial companies face a lot of external scrutiny and need regulatory approvals. By implementing GenAI in their internal processes, these companies are able to navigate the complex regulatory landscape.
For example, successful companies are implementing the best practices of the Google Secure AI Framework (SAIF) – which allows compliance teams to mitigate the risks of AI deployment.
Apart from these favorable factors, companies adopting GenAI need the technical expertise of an experienced partner to navigate the complexities of this transition. This is where Onix is playing a transformational role in the financial services industry.
How Onix is enabling financial institutions to succeed with GenAI
As a Google Cloud partner specializing in AI and cloud migration and modernization, Onix is enabling financial services companies to maximize their AI investments. We believe a strong data foundation is crucial for a successful AI deployment.
Our expertise in the financial services domain is enabling our customers to:
- Modernize their data infrastructure by feeding high-quality data to their AI models.
- Implement customized AI solutions with a measurable ROI – with complete alignment with their business goals.
- Implement a robust data governance framework to navigate the stringent regulatory landscape.
- Accelerate their time-to-market with a variety of deployment strategies.
Our collaboration with leading financial companies has enabled them to unlock the potential of AI and cloud technologies. Are you looking to harness the potential of GenAI and cloud? We can partner with you in your journey to accelerate time to value. Speak to our experts today.
