Pioneering Study by Fifty One Degrees Illuminates Generative AI’s Impact on Financial Services

Fifty One Degrees has unveiled insights from a comprehensive study, revealing that an impressive 84.6% of processes within financial institutions, including banks, insurance firms, and FinTech companies, could be substantially improved through AI technology, potentially leading to a £41.7bn boost in economic output for the sector.

• 8 in 10 tasks will be made more efficient by deploying AI, whereas just over half of tasks will be higher quality where AI is used.
• GenerativeAI (GenAI) is the most powerful AI technology for financial services, and GenAI Assistants would benefit 74.9% of tasks.
• The greatest efficiency gains will be for internally focused tasks and processes, as opposed to customer-facing tasks, with an efficiency gain of 41% for internal tasks, and 34% for customer-facing. 
• GenAI is expected to increase economic output in financial services by up to 15%, resulting in an additional £41.7bn of additional output from the sector.

Announcement from Fifty One Degrees:

On the 19th of March 2024, AI consultant firm Fifty One Degrees shared the results of a significant research study, showing the extensive benefits of generative AI technology for financial services firms.

The study meticulously evaluated 311 tasks across fourteen distinct functions within the financial industry, assessing the applicability and potential benefits of AI technologies for each task.

The Transformative Role of GenAI in Financial Services

The research findings suggest that GenAI Assistants, specifically designed to aid team members across various functions, could positively impact three-quarters of tasks within financial and insurance companies. These assistants, which are trained on particular organizational protocols and regulations, hold immense potential in roles that involve the processing of extensive natural language data, such as in Compliance and Legal, potentially leading to significant enhancements or automation of workflows.

Additionally, the study identifies other AI tools, powered by Generative AI and Large Language Models, as notably impactful, benefiting 39% of tasks. These tools encompass a range of AI-facilitated applications, including training programs and legal resources.

Widespread Benefits and Economic Impact

Functions such as Analytics, Technology, Customer Services, and Underwriting stand to gain considerably in both efficiency and quality through the adoption of GenAI. While areas like Compliance and Legal may see significant efficiency improvements, the increase in the quality of work may not be as pronounced.

The adoption of GenAI within the banking and financial services sector promises to yield a substantial economic impact, with the potential to enhance the sector’s economic output by 15%, translating into an additional £41.7bn in sectoral value.

Insight from Fifty One Degrees’ Leadership