Financial Firms Bet Big on AI with 57% Boosting Hardware Spend

By Gloria Methri

A new wave of artificial intelligence (AI) adoption is sweeping through the financial services sector, with a striking 57% of firms planning to increase their spending on AI hardware in 2024. Competitive concerns largely fuel this shift, as nearly a quarter of financial institutions believe their rivals are significantly investing in AI technologies.

According to recent research by Vesper Technologies, 84% of financial services firms are already leveraging AI, with an additional 14% set to join the ranks shortly. The survey highlights that 55% of respondents feel pressure to enhance their technology initiatives to avoid falling behind competitors. At least 69% suspect their rivals are already using AI, and 24% believe those competitors are making substantial investments in the technology.

The study shows that financial firms are increasingly aligning their budgets with the goal of enhancing operational efficiency and driving innovation. A notable 43% of firms plan to increase their AI hardware budgets by 10-25%, indicating a robust commitment to integrating this technology deeply into their operational frameworks.

NVIDIA emerges as the top choice

Interestingly, NVIDIA emerges as the preferred hardware provider for AI, outpacing its major competitors combined, which reflects the industry’s confidence in its ability to deliver high-performance, customisable solutions.

GenAI is taking the lead as the most widely adopted AI application, utilised by 55% of organisations within the sector. Other popular applications include:

• Virtual agents/chatbots: 36%
• Predictive analytics: 34%
• Fraud detection: 33%
• Text analytics: 33%

Financial leaders are optimistic about AI’s potential impacts, citing improvements in operational efficiency and business innovation as top priorities—each noted by 24% of respondents. Additionally, 59% of firms are prioritising investments aimed at boosting operational efficiency, while 43% are focusing on innovation.

Allan Kaye, CEO and Managing Director of Vesper Technologies, emphasised the evolving landscape, “The sector isn’t just experimenting with artificial intelligence anymore; it’s actively embedding it at the core of day-to-day operations. We’re proud to work with firms pushing the boundaries in this field, ensuring they have the cutting-edge infrastructure needed to manage and scale these demanding AI workloads seamlessly.”

As the financial services sector gears up for a more AI-driven future, the race for technological superiority is intensifying, with firms recognising the critical importance of staying ahead; 2024 promises to be a pivotal year for AI investment and innovation in finance.