The Future of Banking with AI: Insights for Responsible Transformation

The integration of Artificial Intelligence (AI) in the banking sector is no longer a distant vision; it's a pressing necessity that financial institutions are embracing now. According to recent forecasts, the banking industry's annual spending on AI is expected to surge to nearly $67 billion worldwide by 2028, more than doubling from the $31 billion spent in 2024. At the forefront of this evolution are industry leaders from various banking organizations, who have shared five key insights crucial for navigating the landscape of AI responsibly and effectively.

Lesson 1: Anchor Decisions in Business Goals

One of the most critical lessons from banking executives is that AI should not be treated simply as a trend but must be fully integrated into the organization's core strategy. It is imperative for banks to align AI deployment with long-term goals for resilience and competitiveness. As Abraham Izquierdo, Managing Director at Banorte, states, innovation must be recognized not merely as an undertaking but as a fundamental pillar of the institution's overarching strategy. Leadership commitment is essential in fostering a culture where AI can flourish.

Lesson 2: Focus on People, Not Just Technology

While AI has the potential to revolutionize banking operations, the need for human insight and judgment remains unscathed. Banking leaders advocate for a people-centric approach, emphasizing that investments in team skills and corporate culture are just as significant as those in technology. José Miguel Pessanha, Chief Risk Officer at Millennium BCP, highlights that critical decisions about risk strategy and crisis management depend on the creative problem-solving capabilities of their leaders, underscoring the importance of human intellect alongside technological advancements.

Lesson 3: Establish Strong Foundations Before Scaling

Before seeking advanced AI applications, banking leaders stress the necessity of solidifying a robust infrastructure and governance protocols. It’s essential to harmonize data across the organization to support various operational needs, such as risk management and capital calculations. As highlighted by Andrew McCammack from Old National Bank, even incremental AI applications must be established on a solid foundation to ensure effective scaling. A step-by-step approach will build compliance and trust, which are critical for operational success.

Lesson 4: Empower Innovation within Your Organization

To future-proof banks through AI, today's leaders emphasize the transition from merely procured innovation to driving it in-house. This entails equipping teams with AI tools that enhance productivity by freeing employees from mundane tasks and revealing their potential for more strategic contributions. A notable example comes from Old National, where AI successfully automated a significant portion of manual data entry processes, thereby allowing employees to focus on higher-value insights crucial for business growth.

Lesson 5: Commit to Lifelong Learning and Adaptation

AI implementation is a continuous journey rather than a one-time event. It demands a culture of experimentation, openness to feedback, and adaptability to changes. Banking executives also recognize the importance of collaborative efforts with academia and innovative startups to stay abreast of technological advancements. Strategies like creating light applications can drive significant innovation, but they need to be supported by a comprehensive approach to development and deployment.

Conclusion

As AI shapes the future of banking, SAS will present these lessons and more during Sibos 2025, with insightful discussions designed to propel banks toward innovative practices. By grounding AI deployment in transparency, trust, and a commitment to human insight, financial institutions can chart a course for responsible transformation that not only maximizes profitability but also enhances customer relations and operational integrity. Join us at SAS.com/bankingonai to discover how these insights can help your institution thrive in the age of AI.