Accenture’s recent research has unveiled a potential revenue boost for banks by up to 600 bps over three years, courtesy of swiftly scaling generative AI across their operations. By analysing data from over 150 large banks globally, including public and private- sector banks in India, Accenture projected significant financial implications over three years.
The methodology involved analysing data from the US Bureau of Labour Statistics and the Occupational Information Network, encompassing 2.7 million banking employees in the US and their respective roles and tasks. Each task’s potential for automation or augmentation was tagged, along with the time employees spent on it. The financial implications for banks were then modeled based on data from the largest 154 banks, globally over a 12-month period ending September 2023, projecting outcomes over a three-year horizon.
The analysis suggests that effective adoption and scaling of generative AI could enhance employee productivity by up to 30 per cent, particularly in streamlining language-related tasks.
This surge in productivity could translate into a 20 per cent increase in operating income and a 300 bps rise in return on equity levels. Additionally, the technology could pave the way for 1-2 per cent in cost savings, with cost-to-income ratios declining by up to 400 bps.
Accenture also examined how generative AI could reshape the 20 largest roles across banks, categorising them into three groups based on their potential for automation and augmentation. These insights underscore the necessity for banks to optimise generative AI applications, upskill existing employees, and attract specialised AI and data talent to facilitate scaling and operationalisation.
Accenture’s roadmap for enterprise-wide adoption emphasises key traits observed in banks that have achieved early success with generative AI. These include strong board-level and C-suite sponsorship, a robust data foundation and management approach, and secure AI-enabled cloud infrastructure.
Manoj Singodia, MD and lead-financial services at Accenture India, emphasised the importance of a holistic and long-term strategy for Indian banks to unlock generative AI’s full potential. This entails reimagining traditional processes, prioritising AI integration into value chains, and building a robust foundation of data and digital powered by cloud.
