The most recent survey reveals that artificial intelligence (AI) might not lead to cost savings in the near future; rather, it could potentially escalate operational costs. A staggering 70% - plus of respondents from the financial services sector predict that AI applications will drive up operational expenses over the next three years. Two - thirds of financial service firms anticipate a rise in staff numbers during the initial phases of AI implementation, although the majority believe that productivity will surge at a more rapid pace.

The report highlights that in the early stages of AI adoption, the financial services sector is centered on capacity building. It is expected that cost ratios will return to normal levels after 2027 - 2028. Despite the fact that numerous financial institutions are actively rolling out AI with the aim of cutting costs, the financial sector trails behind industries such as retail or technology in terms of the speed of AI adoption. This lag is mainly due to risk management and compliance - related concerns.

In the long run, the market holds the view that AI will have a far - reaching impact on the financial industry, with some of its effects potentially becoming noticeable as early as next year. Moreover, respondents from different industries regard AI as highly disruptive. Industries like pharmaceuticals, media, and consumer goods also have positive expectations for AI applications, as executives from various sectors are vying to integrate AI into the very core of their businesses.