Introduction

Generative AI (GenAI) is reshaping industries worldwide, and financial services is no exception. From enhancing marketing strategies to streamlining operations, firms are increasingly exploring AI-driven solutions. But what’s holding them back? And where do they see the greatest opportunities?

To find out, we conducted a survey with financial services professionals to understand their perspectives on GenAI adoption, challenges, and future plans. Here’s what we discovered.

1. GenAI’s Biggest Benefit? Operational Efficiency.

It’s no surprise that the top advantage of GenAI is efficiency. 74% of respondents identified operational efficiency as the biggest benefit of using AI in their firm.

AI-driven automation reduces manual processes, enhances data analysis, and improves decision-making—allowing financial institutions to serve clients faster and more effectively.

Takeaway: If your firm isn’t leveraging AI for operational improvements, you may be falling behind competitors who are using it to optimize workflows and reduce costs.

2. Data Privacy & Security Remain Major Concerns

While GenAI presents exciting opportunities, 70% of firms cited data privacy and security as their top concern and 54% worry about regulatory and compliance risks. Understandable given that financial services firms operate in a heavily regulated environment, where client confidentiality and data security are paramount.

Additionally, 66% of respondents expressed concerns about the reliability of AI-generated insights and 32% raised bias in algorithms. Ensuring that AI models produce accurate, transparent, and explainable outcomes is crucial for maintaining trust in automated decision-making.

Takeaway: Firms looking to adopt GenAI must prioritize robust security measures, ensuring compliance with industry regulations while maintaining client trust.

3. Knowledge Gaps Are Slowing Adoption

A significant barrier to adoption is a lack of understanding and knowledge, cited by 60% of respondents.

Many financial services professionals are still navigating what GenAI can do and how to implement it effectively. Without a clear strategy, adoption remains slow.

Takeaway: Firms need education and strategic guidance to maximize AI’s potential. Industry leaders who invest in upskilling their teams will be best positioned to leverage AI effectively.

4. Generative AI Adoption Is Rising – Fast

Despite challenges, the momentum is clear: 84% of firms say they are likely or very likely to increase GenAI adoption within the next 2-3 years.

Takeaway: AI is no longer a distant future—it’s happening now. Firms that delay adoption risk missing out on efficiency gains, improved customer experiences, and enhanced decision-making.

5. Marketing Is Leading the Way

When asked about current use cases, 54% of firms identified marketing and personalization as their top GenAI application.

From automated content generation to personalized client interactions, AI is helping financial marketers drive engagement more efficiently.

Takeaway: AI-powered marketing is no longer optional. Firms investing in AI for marketing are gaining a competitive edge in client engagement and retention.

The Bottom Line: AI Adoption in Financial Services Is Growing—But Challenges Remain

Financial services firms are recognizing the power of GenAI, with operational efficiency and marketing personalization leading the way. However, security concerns, knowledge gaps, and regulatory compliance are still significant hurdles.

Firms that act now—investing in education, security, and strategic AI implementation—will be best positioned to succeed in this AI-driven landscape.