Highest Return on Investment in Banking AI Sector: Cybersecurity Protection
Canadian banks are significantly investing in artificial intelligence (AI) and machine learning, with more than a third of their IT budgets allocated to these technologies, according to various reports.
A new study from GFT, a global IT consulting and solutions provider, reveals that nearly 75% of Canadian banks are deploying AI for fraud detection. The study's key findings highlight the potential benefits of GFT's AI-powered tool, Wynxx, which accelerates the deployment of AI and cloud projects.
Wynxx reduces the time to launch these AI and cloud capabilities by up to 95%, enabling banks to significantly enhance efficiency while reducing costs in digital transformation projects. This acceleration supports enhanced fraud detection, cybersecurity, and customer service by enabling rapid development and deployment of AI solutions.
The study suggests that AI adoption supported by Wynxx allows Canadian banks to rapidly deploy sophisticated AI-driven solutions, improving threat detection accuracy and response times, which are crucial for cybersecurity and fraud mitigation. These solutions leverage cloud scalability and centralized AI models.
Regarding customer service, AI deployment enabled through the Wynxx platform presumably enhances customer interactions by enabling faster, more personalized services due to the swift rollout and iteration of AI-powered customer experience tools.
However, the study also indicates that AI adoption in Canadian financial services faces challenges such as legacy system modernization and the complexity of cloud migration. Tools like Wynxx lower these barriers to adoption, allowing Canadian banks to compete more effectively with peers.
Despite these challenges, Canadian banks are increasing their AI investment by 20% over the next five years, according to reports. The study also highlights that AI has played a larger role in back-office initiatives than in customer-facing ones.
Interestingly, 63% of Canadian banks are currently using AI in some form, with nearly 68% reporting the use of AI to enhance customer service. However, only 18% report seeing measurable results in that area.
Although a third have implemented AI for internal operational functions, the majority of those report that back-office applications are delivering the greatest value. More than half of Canadian banks surveyed plan to adopt a hybrid approach for AI, combining in-house and outsourced teams.
AI presents a double-edged sword for these banks, with half citing cybersecurity risk as their top challenge when considering AI adoption. With AI systems handling sensitive data and influencing critical decisions, banks are increasingly caught between the drive for innovation and the need for protection.
Roughly two-thirds of Canadian banks are using AI to bolster cybersecurity. The models used in AI and machine learning for fraud detection improve over time, making fraud detection more precise as time goes by.
In conclusion, the GFT study’s key findings highlight the potential benefits of AI in Canadian banking, including accelerated deployment, enhanced fraud detection, improved customer service, and lower barriers to digital transformation. However, challenges such as legacy system modernization and cybersecurity risks remain. Canadian banks are increasing their AI adoption but still lag behind global peers, underscoring the strategic significance of these advancements.
The study suggests that AI adoption through tools like Wynxx allows Canadian banks to rapidly deploy sophisticated AI-driven solutions, improving threat detection accuracy and response times, which are crucial for both cybersecurity and fraud mitigation.
More than half of Canadian banks surveyed plan to adopt a hybrid approach for AI, combining in-house and outsourced teams, indicating a significant investment in AI for technology and finance-related business areas.
