IBM Study: Generative AI Will Boost Banks’ Financial Performance by 2025

IBM (NYSE: IBM) has released its expectations for technology and transformation in the global financial services industry in the coming year, as outlined in a reportIBM Institute for Business Value 2025 Outlook for Banking and Financial Markets.

Key Insights

• The adoption of generative AI is about to skyrocket. Only 8% of banks systematically developed generative AI in 2024, while 78% approached it tactically. As banks move from pilot projects to implementation, they are increasingly redefining their strategies to expand services, including the adoption of AI agents.
• The constant banking convergence is giving rise to contrasting financial performances. The reimagining of the business model and processes, and especially their execution, will be the differentiator between leaders and others.
• 60% of banking CEOs surveyed acknowledge that they need to accept some level of risk to take advantage of automation and increase competitiveness.
• While more than 16% of customers globally are comfortable with a fully digital, branchless bank as their primary financial institution, competition is shifting from mass-market digital offerings to higher-value services, including embedded finance and advisory services for high-net-worth investors and small and medium-sized enterprises (SMEs).

"We are observing a significant shift in how generative AI is being implemented in the banking sector, as institutions move from broad experimentation to a strategic approach focused on targeted applications of this powerful technology," said Shanker Ramamurthy, General Manager of Banking and Financial Markets at IBM Consulting.With banks and other financial institutions worldwide preparing for a crucial year of investments in transformation, technology, and talent, we anticipate their efforts will focus on using generative AI to enhance customer experience, increase operational efficiency, reduce risks, and modernize IT infrastructure.

The report shares insights from industry thought leadership sentiment analysis, banking customer behavior, and economic data from eight major markets — the United States, Canada, the European Union, the United Kingdom, Japan, China, India, and Japan — and what financial institutions and their partners can learn from these trends.

For more information and to download the full report, visit:https://ibm.co/2025-banking-financial-markets-outlook.