Executive Summary
Incorporating Artificial Intelligence (AI) has shifted from an elective upgrade to a core investment strategy for banks seeking to remain future-ready against non-traditional competitors like fintechs and neobanks. Leading global banks invest billions of dollars annually, reporting substantial gains by way of cost savings and revenue growth by incorporating AI in their systems. Similarly, GCC banks are increasingly adopting AI for functions ranging from real-time fraud management to hyper-personalized retail banking.
Despite these successes, 80% of finance-related AI initiatives fail to deliver organizational value. Primary challenges include high upfront costs, fragmented legacy infrastructure, and data bias. High-profile setbacks often occur when AI is utilized purely for cost-cutting or as a direct human replacement, which can result in diminished customer satisfaction and significant reputational loss.
This report provides a strategic playbook to C-Suite members for successful adoption of AI in banking sector - banks must modernize underlying digital infrastructure and adopt a phased implementation, beginning with internal pilots. Effective transition requires viewing AI as a value enabler, while prioritizing employee upskilling and robust governance frameworks to manage ethical and operational risks. Ultimately, as AI technology is still maturing, decision-makers must follow data-driven paths to navigate evolving risks.
