G A U G I N G T H E M A R K E T
G A U G I N G T H E M A R K E T
GENAI-DRIVEN INVESTMENT REMAINS CENTRAL TO EUROPEAN FINANCIAL FIRMS , WITH 72 % OF EXECUTIVES PLANNING TO INCREASE EXPENDITURE OVER THE NEXT SIX TO 12 MONTHS .
demand for AI talent is data science and innovation ( the top choice for 54 % of respondents ). The second and thirdranking areas have switched places this year , and second in 2024 is back-office operations ( 46 % of respondents , up from 14 % in 2023 ), followed by information technology ( 40 % of respondents in 2024 , up from 24 % in 2023 ).
When asked to consider the top attributes that firms will seek as they recruit entrylevel talent for an AI-enabled workforce , the top three cited by European financial services leaders were the ability to adapt and flex ( 77 %), having an innovative and experimental mindset ( 70 %) and the ability to collaborate and work outside their focus area ( 44 %). This year , being tech-savvy did not rank as a top priority ( 34 %).
European finance leaders plan to increase capital allocation to GenAI specifically
The survey data confirms that GenAI-driven investment remains central to European financial firms , with 72 % of executives planning to increase expenditure over the next six to 12 months . This is marginally lower than the 75 % of leaders in 2023 who said they would actively invest in GenAI in the year ahead .
GenAI knowledge , future regulation , and keeping pace are leaders ’ top concerns
Focusing on GenAI specifically , the two biggest concerns according to executives when it comes to integrating the technology remain the same as last year . European finance leaders cite limited understanding and experience of GenAI applications and the impact across the workforce ( 56 % in 2024 , up from 36 % in 2023 ), followed by uncertainty about existing and pending potential regulatory impacts ( 38 % in 2024 , up from 29 % in 2023 ).
Ethical issues – which were ranked third in 2023 have fallen to eighth place , and leaders are now more concerned about the speed of evolution of GenAI progress compared to how fast they can integrate it into their business ( 35 %), followed by the cost of implementation and control frameworks ( 26 %).
In reference to the broader AI landscape , only 11 % of leaders stated that their firm is fully prepared for incoming regulation , while 70 % say their firm is only limited or partially prepared , and 15 % do not even have an AI regulatory risk framework in place .
Ethics in GenAI integration
On GenAI specifically , leaders continue to raise concerns about ethics . The top concern in 2024 for GenAI adoption is the quality of output ( cited by 56 % of all respondents ), followed by transparency and explainability ( 54 %), privacy ( 53 %) and the potential for discrimination , bias , and lack of fairness ( 47 %).
To manage potential ethical implications arising from GenAI integration , 14 % of respondents claimed they have already put an overall AI ethics framework in place , with a further 31 % in the early stages of development . However , a quarter ( 25 %) of respondents stated their firm is yet to develop an AI ethics framework , and 24 % said they have no plans to develop one .
“ GenAI technologies are moving the goalposts of what is possible for financial services firms when it comes to operations and back-office processes ,” said Ayman Awada , EY EMEIA Financial Services Banking Technology and GenAI Leader . “ There is a small segment of the market that sits ahead of the curve by scaling AI capabilities at pace , but many firms are barely progressing from early-stage adoption and predominantly focus on the back-office . Despite investment , moving beyond the experimental stage has been slower than expected for Europe ’ s financial firms , and the benefits are often siloed within departments .
“ Many banks , insurers and asset managers across Europe still have some way to go to reach the next level of AIenablement ,” Awada added . “ Raising the bar on regulatory readiness , and upskilling new and current staff to embrace GenAI now and in the future will be the key to unlocking deeper adoption .” � www . intelligentfin . tech
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