Generative artificial intelligence (GenAI) is set to boost the Indian financial services and it is further expected to potentially add around USD 66 to USD 80 billion to the GVA (Gross Value Added) by 2030. In the latest EY India report, GenAI's impact on the GVA within the Financial Services sector is most significant and has been ranging from 22 per cent to 26 per cent.
As per the report, a majority of survey participants highlighted focus on two key areas:
- Customer service
- Cost reduction.
About 61 per cent of respondents in the financial services sector believe that GenAI will majorly impact on the entire value chain, making it more efficient and responsive to market dynamics.
Pratik Shah, Partner and Financial Services Consulting Leader, EY India said, "GenAI promises to revolutionise various facets of financial services, from customer acquisition to service and collections. Globally, financial institutions foresee a timeframe of 5 to 10 years to fully leverage the potential of Gen AI."
He further said: "In alignment with this, Indian financial services organisations are proactively forming specialised cross-functional teams and allocating dedicated funds for Gen AI deployments."
When asked which aspects of the company GenAI would most affect, 94 per cent said 'customer experience', 78 per cent said 'cost reduction', and 61 per cent said it would have the greatest impact on 'driving innovation', the report noted.
Abizer Diwanji, Head -- Financial Services, EY India said, "Financial firms must promote AI awareness and cultivate a culture that increases its potential for positive impact, while curtailing misuse."
When asked about executing their GenAI strategy, about 83 per cent said they expect partnering with external tech providers whereas 67 per cent expressed confidence in developing LLMs/in-house capabilities, according to the report.
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Inputs from IANS
