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Is AI the new power broker in finance?

By Puja Sharma

February 06, 2025

  • AI
  • Ai Financial Services
  • chatgpt
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artificial intelligence, AI, Digital Banking, Banking Modernization, FinTech, UK

The State of AI in Financial Services: 2025 Trends report by NVIDIA provides an in-depth analysis of how AI is reshaping the financial sector. Based on a survey of 600 global professionals, the report highlights the industry’s growing reliance on AI to enhance efficiency, improve customer experiences, mitigate risks, and optimise investment strategies. A key takeaway is that 98% of management respondents plan to increase AI spending in 2025, reflecting AI’s strategic importance. Notably, generative AI adoption has surged, with over half of respondents already using it—up from 40% last year. Financial firms are investing heavily in AI infrastructure, particularly in computing platforms designed to process vast amounts of data for advanced analytics and AI-driven decision-making.

AI adoption in financial services has matured significantly, shifting from early experimentation to full-scale deployment across various business functions. Data analytics remains the most widely used AI workload, helping firms with fraud detection, risk assessment, and personalised customer services. Generative AI has quickly become the second-most-used AI application, with firms leveraging it for chatbots, report generation, and trading automation. Beyond these applications, AI is proving transformative in cybersecurity, where financial institutions are now using it to combat spear phishing, fraud, and supply chain attacks. The benefits of AI are also evolving—while operational efficiencies remain crucial, firms are increasingly recognising AI’s ability to create competitive advantages, improve employee productivity, and open new business opportunities.

Generative AI is at the forefront of this transformation, with significant applications in customer engagement, trading optimisation, risk management, and compliance. More than half of respondents report using generative AI for customer service applications, such as chatbots and virtual assistants, which are becoming more sophisticated and capable of delivering personalised financial guidance. The use of generative AI in document processing has seen 53% adoption, allowing firms to automate KYC verification and regulatory compliance. Additionally, AI-driven synthetic data generation is emerging as a powerful tool for financial institutions, enabling them to train fraud detection models without exposing sensitive customer information.

AI is also driving substantial business impact, with firms reporting both revenue growth and cost savings. Nearly 70% of respondents indicated that AI increased revenue by at least 5%, and 60% reported similar reductions in annual costs. Investment in AI infrastructure is at an all-time high, with firms focusing on AI Factories—specialised AI-powered computing platforms—to scale their AI initiatives. Additionally, hiring AI talent is a top priority, with a 42% increase in spending on AI expertise. As financial firms move beyond pilot projects, they are optimising AI workflows and engaging third-party partners to accelerate adoption.

While AI-related challenges such as data privacy concerns and budget constraints have declined, energy efficiency is now a key focus area. Financial firms are actively seeking ways to reduce the power consumption of AI workloads, with strategies including software optimisation, cloud adoption, and more energy-efficient hardware like GPUs. Looking ahead, Agentic AI is poised to be the next major trend, enabling AI agents to autonomously handle complex tasks such as cybersecurity threat detection, customer service, and real-time investment analysis.

Ultimately, AI is no longer just an operational tool—it has become a strategic imperative for financial services. With increasing investments, expanded use cases, and maturing infrastructure, AI is set to redefine how financial firms operate, compete, and innovate in 2025 and beyond.

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