Generative AI in banking: empirical insights on integration, challenges and opportunities in a regulated industry

What is it about?

This study explores how Generative AI, like ChatGPT, can be used in the banking industry. While AI has transformed many fields, its use in banking hasn't been studied much, especially given the strict rules and privacy concerns in this sector. The research looks at real-world examples of AI in banks, focusing on how prepared managers are to use it and what challenges they face, such as following regulations and protecting data. The study identifies five key factors that are crucial for successfully using AI in banks: understanding the technology (Recognition), knowing what is needed (Requirement), ensuring it works reliably (Reliability), complying with regulations (Regulatory), and responding to changes (Responsiveness). These factors help determine how effective AI can be in banking. The findings provide valuable insights for banks, helping them navigate the challenges of adopting AI while staying compliant with regulations and protecting customer data. This research is one of the first to provide real-world evidence of how AI can be practically applied in the highly regulated banking industry.

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