76% of Financial Service Companies Report Launching AI Initiatives, Finds Acrew Capital and Money20/20 Index

A new report, “ALL IN ON AI: Financial Services Adoption Index 2024,” reveals that 167 of the world’s 221 leading financial service companies have launched AI initiatives since January 2023. The report, introduced by Acrew Capital and Money20/20 at the Money20/20 show in Las Vegas, highlights an impressive shift for an industry known for its cautious approach to adopting new technologies, especially given its stringent regulatory environment. This surge in AI adoption reflects a profound transformation in the way financial services are delivered and experienced.

The report also finds that 46% of these companies are integrating Generative AI into core customer-facing products, reshaping the value proposition in financial services. The research includes 376 publicly disclosed AI projects across top-tier public and private firms, featuring case studies from innovators like bunq, Chime, Gusto, NVIDIA, OpenAI, Vanta, and Xero.

The index, a collaborative effort between early-stage investment firm Acrew Capital and Money20/20, the premier fintech event, offers a comprehensive view of how AI is driving value in financial services. This insight is beneficial for industry leaders to benchmark their strategies and for fintech entrepreneurs looking to capitalize on disruptive opportunities.

Key Findings:

  • Leaders at the Forefront: The top five companies, including Block, Intuit, J.P. Morgan, Chime, and Stripe, contribute 15% of the total AI initiatives. Notably, Block has embedded AI extensively within Square’s offerings for sellers. Challenger banks like Chime and Nubank, along with firms like Xero and Ramp, demonstrate outsized AI impact relative to their scale. For example, Chime’s AI-driven customer support chatbot now handles 70% of interactions, enhancing service satisfaction by 40% and reducing dispute resolution times.
  • Dominance of CFO Software: CFO-focused software companies lead in AI use, aiming to streamline data processing and provide predictive insights. Notably, Xero launched JAX, an AI-driven assistant, in August 2024 to simplify accounting tasks via WhatsApp, email, and SMS.
  • Wall Street and Generative AI: On Wall Street, Generative AI leads in new tech initiatives, with companies like FactSet and Bloomberg developing proprietary large language models, underscoring their commitment to AI innovation.
  • Diverse Motivations: 57% of companies use AI to drive revenue and growth, showing the industry’s willingness to explore AI’s transformative potential. However, highly regulated areas like Banking, Credit & Lending, and Insurance tend to emphasize efficiency and cost-saving AI applications.
  • Public vs. Private Company Strategies: Public companies are 67% more likely to announce AI projects than private firms, although the difference narrows in Generative AI projects. Private companies, focused on agility, tend to prioritize revenue-driving initiatives.
  • Opportunities for AI Startups: Startups specializing in AI have a significant opportunity in areas like fraud prevention and wealth management, where AI adoption is still nascent. For instance, U.S. fraud losses are expected to rise dramatically, yet only 7% of companies currently employ AI-based fraud solutions.

Scarlett Sieber, Money20/20’s Chief Strategy Officer, observed that AI is a transformative force in financial services, though many companies struggle to define its practical applications and long-term impacts. Meanwhile, Lauren Kolodny, Co-founder & Managing Partner at Acrew Capital, noted that AI could catalyze a fundamental overhaul of the financial services industry, marking a shift from legacy systems toward innovation-driven solutions.

Methodology: The report examined over 300 AI initiatives from 200+ fintech and financial service companies valued at $5 billion or more. Data was gathered from public announcements and company sources, covering trends across nine sectors, with a focus on AI’s applications in product development, customer service, risk management, and operations.

For full insights, download the complete report here.

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