NTT Data Explores the Adoption of Gen AI in Banking
NTT DATA has released its ‘Intelligent Banking in the Age of AI’ report, detailing global insights on GenAI adoption.
The survey was led by NTT DATA Group’s Global Industry Office (part of the Global Marketing & Communications HQ) and was carried out on 810 banking leaders from all global banking markets.
It highlighted the growing divide between organisations on how best to leverage Gen AI as its adoption in the banking industry continues to rise.
Robb Rasmussen, Head of Global Marketing & Communications at NTT DATA explains: “Generative AI represents a pivotal moment for the banking industry.
“While the potential benefits are enormous, the challenges of implementing Gen AI are complex and varied, requiring careful navigation and a structured approach.
“Given the anticipated high spending on Gen AI, achieving a return on investment is crucial.
"Many banks will be expecting GenAI to drive long-term savings by automating IT tasks, improving operational efficiency and creating competitive advantages, but it’s important to note that achieving meaningful ROI requires a clear strategy, tailored implementation and robust governance at the same time.”
How Gen AI transforms banking
Gen AI is transforming banking by automating compliance processes, enhancing customer service with AI chatbots and improving fraud detection through real-time anomaly monitoring.
NTT DATA’s report mirrors this extensive use of Gen AI, with 97% of banks having adopted a Gen AI strategy.
71% of banks are also increasing their IT budgets for Gen AI, with an average budget increase of 11%.
Niraj Singhal, Group Senior Vice President, NTT DATA North America, explains: “Gen AI isn’t just a technology - it’s a mindset shift. It offers cost efficiency, competitive advantage and the potential to fundamentally transform how banks operate.”
Despite this significant rise in Gen AI adoption, there seems to be a significant divide in how organisations are utilising this technology.
50% of banks measure Gen AI success based on enhanced efficiency and productivity, whereas 49% focus on minimising IT costs and 48% on gaining a competitive edge.
- US (59%) banks prioritise Gen AI for cost-cutting
- LATAM (48%) banks focus on competitive advantages
- APAC (54%) banks focus on productivity
The Impact of Gen AI Across Banking Sectors
Gen AI is transforming banking across all sectors, including retail, investment and commercial.
In retail banking, AI-powered chatbots, automated fraud detection and personalised financial advice are improving security and customer experience.
AI-driven market analysis and algorithmic trading are also enhancing portfolio management and decision-making in investment banking.
NTT DATA spotlights the extensive impact Gen AI is having on the banking industry:
Payments
- 49% of banks use Gen AI to optimise working capital decisions
- 44% report AI-driven improvements in checkout experiences and automated customer support
- 69% of banking leaders state Gen AI enhances fraud detection accuracy
Arsen Aslanyants, Managing Director, Risk and Compliance Practice Leader at NTT DATA North America, explains: “Fraudsters are increasing the sophistication of attacks, which is consequently increasing the frequency of data breaches.
"Encryption, multi-factor authentication and real-time monitoring are baseline measures, but identifying weaknesses allow firms to tailor defenses leveraging technologies such as AI.
"With growing regulatory scrutiny on consumer protection, cybersecurity investment not only safeguards profits and maintains customer trust, but it also prevents regulatory penalties.”
Fraud prevention
- Fraudsters use AI to improve attack sophistication
- 86% of respondents say banks should be more involved in the development of fraud regulations
- 60% of banks are increasing investments in real-time security monitoring
Challenges and the future of GenAI Implementation
Gen AI faces difficulties including data privacy risks, raising worries over regulatory compliance and security.
Organisations must adopt responsible AI governance to secure fairness, transparency and accountability.
According to NTT DATA, 41% of banks believed financial concerns was the biggest challenge to Gen AI implementation, with security coming shortly after (38%).
Regulatory concerns (37%) and cultural and ethical resistance (36%) also posed significant challenges.
As organisations navigate the AI landscape, it is clear effective methods must be implemented to build resilient infrastructures and integrate AI responsibly.
NTT DATA states that collaboration is the preferred approach, with 52% of banks favouring AI-human workflows rather than full automation.
Banks are also investing heavily in AI training, with 45% focusing on training IT staff and fraud prevention teams to manage AI-driven risks.
Robb Rasmussen, Head of Global Marketing & Communications, NTT DATA adds: “It is clear that the ability to balance innovation with fiscal responsibility will define success for banks.
“However, many banks are lacking in maturity when it comes to this technology and are unsure where to start.
"Partnering with systems integrators can be a good starting point, allowing them to access the latest knowledge while ensuring compliance with industry regulations.
“By working with specialised providers, banks can ensure that GenAI implementations can deliver the desired ROI, while maintaining robust data protection measures and meeting both internal security standards and regulatory requirements.”
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