Temenos: 75% of Banks Now Exploring Gen AI Deployment

Banks worldwide are accelerating deployment of generative AI (Gen AI) applications, with operating efficiency improvements serving as the primary driver, according to new research from banking technology provider Temenos.

The survey, conducted by market research firm Hanover Research, gathered responses from 420 banking executives across retail, commercial, credit unions and wealth management sectors globally. All respondents held director-level positions or higher in IT or business roles.

Deployment trends reveal growing momentum

The findings show 75% of banks are exploring Gen AI deployment. 

Of these, 36% have already deployed the technology or are in the process of implementing it, while 39% are evaluating potential applications.

Investment is set to increase, with 43% of banks already using or exploring Gen AI planning to expand their financial commitment to the technology in 2025, compared to their 2024 spending.

Beyond efficiency gains, banks are turning to Gen AI to enhance customer experience and support business growth strategies, the research indicates.

Concerns persist despite adoption progress

Despite growing implementation, the survey reveals significant reservations among banking executives. 

Data protection emerged as the predominant concern, cited by 86% of respondents.

Regulatory compliance also features prominently among executive apprehensions, with 60% expressing concerns about meeting legal requirements when deploying Gen AI systems.

Technical limitations continue to create barriers to adoption. 

“Hallucinations” – instances where Gen AI produces factually incorrect information – were identified as a concern by 59% of respondents.

Looking forward, 73% of banking executives agreed that Agentic AI, which refers to AI systems capable of autonomous decision-making and action, will fundamentally alter banking operations and service delivery.

Isabelle Guis, Chief Marketing Officer at Temenos, says: “This survey highlights both the enthusiasm and challenges banks are facing as they explore Gen AI. 

“There's huge potential for GenAI to enhance efficiency, address operational challenges, and elevate the customer experience. However, concerns around data privacy, legal requirements and accuracy remain top of mind.”

Implementation strategies vary across institutions

Temenos, which provides core banking software and services to financial institutions globally, offers flexible deployment options for its Gen AI solutions including cloud, Software-as-a-Service (SaaS), and on-premises infrastructure.

The company has established collaborations with major cloud computing providers, recently announcing a partnership with NVIDIA to support on-premises Gen AI deployment. 

This approach aims to deliver AI-powered banking services while maintaining data privacy and control.

Temenos has also implemented internal AI initiatives to improve productivity and streamline its own operations, according to the company statement.

The survey gathered perspectives from banking executives across multiple global regions, with representation from North America (47%), Europe (23%), Middle East and Africa (18%), Latin America (6%), and Australia and New Zealand (6%).

Hanover Research, which conducted the survey in February 2025, operates as a global research and analytics firm providing market intelligence to more than 1,000 clients through a fixed-fee model. 

The Arlington, Virginia-headquartered firm has been recognised as a Top 50 Market Research Firm by the American Marketing Association annually since 2015.

“Gen AI is not a silver bullet—banks also need to balance a human touch in the process to ensure that interactions remain differentiated and build trust with their customers,” Isabelle adds.

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