Generative AI: Customer service is the first priority; Investments in India are steadily rising, and banks' capacity is expected to grow by 46% by 2030

Generative Artificial Intelligence (AI) is reshaping India's financial services industry. This is leading to huge leaps in the interaction with customers, operational efficiency, and risk evaluation. It is reported by the report by EY that the operational efficiency of banks can be increased by 46% by 2030 through generative AI. Additionally, the productivity level in Indian financial services can be increased by 34 to 38% by the next five years. It is reported by the report that generative AI investments are steadily on the rise. 42% of organizations are making active investments in AI projects. They are adopting generative AI at a fast pace in areas like voice bots, email automation, business intelligence, and workflow automation.

According to the report, customer service is the top priority. To improve it further, 68% of companies are prioritizing generative AI. 47% of companies are adopting generative AI to increase operational efficiency, 26% to increase sales and 21% to strengthen information technology.

This report has been prepared on the basis of conversations with more than 125 corporate executives across the country. They represent diverse sectors including financial services, retail, healthcare, life sciences, media-entertainment, technology, automobile, industrial and energy.

Pratik Shah, Partner and Head of Financial Services at EY India, said, investments in generative AI are already giving favorable results. About 63% of companies have seen improvement in customer satisfaction levels, while 58% have admitted to cost reduction. AI-driven solutions have reduced the per unit cost of normal business activities by one-tenth, Shah said.