Artificial Intelligence is rapidly transforming the banking industry, and Goldman Sachs is one of the leading banks embracing this change. A recent report by Evident’s AI benchmarking platform shows that AI is no longer just an experiment in banking. Instead, it has become an essential tool for improving efficiency, security, and customer experience.
Evident’s AI Use Case Tracker has identified 167 examples of AI being used in the world’s 50 largest banks. Some of the biggest names in banking, including Goldman Sachs, JPMorgan Chase, Commonwealth Bank, and ANZ, are investing heavily in AI. This shift marks a major turning point as banks move from testing AI to fully integrating it into their daily operations.
According to Alexandra Mousavizadeh, co-founder and co-CEO of Evident, banks now need to show real results from their AI investments. She explains that measuring the impact of AI is more important than ever as banks spend hundreds of millions of dollars on AI technology. Instead of just claiming to use AI, banks must now prove its value.
Previously, most banks used AI mainly to improve efficiency, with around 90 percent of AI applications focused on making banking processes faster and smoother. However, this trend is changing. The latest data shows that banks are now using AI for a variety of reasons, including risk reduction, customer satisfaction, and revenue growth.
About 20% of AI applications are now focused on risk reduction. This includes detecting fraud, improving security, and ensuring compliance with regulations. Another 15 percent of AI use cases are aimed at improving customer satisfaction, such as using AI-powered chatbots to assist customers more quickly and accurately. Additionally, 15 percent of AI applications are designed to help banks increase their income, such as using AI for better investment decisions and financial planning.
Goldman Sachs is one of the most active banks in AI adoption. The bank has recently launched Legend AI Query, a tool designed to help employees find information faster and work more efficiently. With this and other AI developments, Goldman Sachs is positioning itself as a leader in the industry, alongside other major banks like JPMorgan Chase, CommBank, and ANZ.
AI is being used in many different areas of banking. Around 30 percent of AI applications are in retail and personal banking, where chatbots and other AI tools are making customer service more efficient. IT and security make up 14 percent of AI applications as banks use AI to strengthen cybersecurity and prevent fraud. Investment banking accounts for 10 percent of AI adoption, where AI is being used for trading, financial forecasting, and risk management. Other business functions such as human resources, auditing, and operations make up around 5 percent of AI use cases.
As more banks adopt AI, they are also becoming more transparent about how they are using it. Experts suggest that banks that fail to share their AI strategies may risk falling behind. Transparency not only builds trust but also shows confidence in the impact AI is having on banking operations.
Goldman Sachs and other major banks are proving that AI is more than just a trend. It is a game-changing tool that is shaping the future of banking. As AI continues to improve efficiency, security, and customer experience, it is expected to play an even bigger role in the financial industry in the coming years.
As different investment banks, such as B. Riley Financial Inc. (NASDAQ: RILY) increasingly adopt AI in their operations, customers could be the net beneficiaries as these technologies could translate into lower costs for the services they need.
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