Global banks see AI delivering real value as cloud and cost strategies shift

By Puja Sharma

Infosys’s latest Bank Tech Index (Volume 6) arrives at a moment when global banking is no longer experimenting with technology—it is operationalising it at scale. Covering 400 of the world’s largest banks across regions, the report captures an industry moving decisively beyond pilots and proofs-of-concept into a phase where technology investments are expected to deliver measurable, enterprise-wide outcomes.

What stands out immediately is the shift in how banks are approaching artificial intelligence. AI is no longer a side bet or innovation lab experiment; it is becoming embedded into the core of banking operations. According to the index, a majority of AI initiatives are now delivering tangible business value, signalling that institutions have crossed a critical inflection point. The conversation has moved from “what can AI do?” to “where can AI deliver the most impact, fastest?”—and banks are answering that question with increasing clarity.

Customer-facing functions have emerged as the most visible beneficiaries of this shift. From service automation to personalised engagement, banks are deploying AI to redefine how they interact with customers in real time. But the impact does not stop at the front end. Cybersecurity, risk management, and internal operations are also seeing meaningful gains, underscoring a broader trend: AI is as much about strengthening the bank’s core as it is about enhancing the customer experience. In a landscape defined by rising digital threats and regulatory scrutiny, this dual role is becoming essential.

At the same time, the report highlights a more nuanced evolution in cloud strategy—one that reflects the realities of operating in a highly regulated environment. While public cloud adoption initially powered rapid digital transformation, banks are now recalibrating. The growing tilt toward private cloud signals a need for greater control, data sovereignty, and resilience. Rather than a retreat from the cloud, this is a strategic rebalancing—an effort to combine the scalability of public infrastructure with the governance and security of private environments.

Cost optimisation is another theme that runs through the findings, revealing a subtle but important shift in priorities. Banks are not stepping back from innovation; instead, they are becoming more disciplined about how and where they invest. Technology decisions are increasingly being evaluated through the lens of efficiency, return on investment, and long-term sustainability. This reflects a broader industry reality: in an environment of economic uncertainty and margin pressure, growth must be accompanied by cost intelligence.

Emerging technologies such as tokenisation are also beginning to feature more prominently in strategic conversations. While still in the early stages of adoption, they point to where the industry is headed—toward more flexible, programmable, and interoperable financial systems. Banks are not just modernising existing infrastructure; they are laying the groundwork for entirely new models of value exchange.

Taken together, the findings from Infosys’ Bank Tech Index suggest that global banking is entering a more mature phase of digital transformation—one defined less by experimentation and more by execution. AI is proving its value at scale, cloud strategies are becoming more sophisticated, and cost optimisation is shaping the next wave of technology investments. For banks navigating an increasingly complex landscape, the message is clear: technology is no longer just an enabler of change—it is the foundation on which competitiveness, resilience, and future growth will be built.

Key Takeaways:

• AI adoption is scaling: 59% of initiatives deliver measurable value.
• Customer service leads: 22% of AI impact is in customer-facing functions.
• Cybersecurity is critical: 15% of AI value creation, plus cost efficiencies.
• Cloud strategies are shifting: Private cloud adoption is rising, public cloud declining.
• Cost optimisation is rising: Efficiency is now a stronger priority alongside innovation.