IBM Study Predicts Generative AI to Drive Banking Industry Performance in 2025
ARMONK, N.Y. – February 6, 2025 – IBM (NYSE: IBM) has unveiled its annual outlook for the global financial services sector, forecasting a transformative year as generative AI (Gen AI) moves from pilot programs to full-scale enterprise implementation. The findings, published in the IBM Institute for Business Value 2025 Outlook for Banking and Financial Markets, highlight how AI-driven strategies will redefine banking operations, customer engagement, and financial performance.
Key Findings from IBM’s 2025 Financial Outlook
IBM’s study underscores a rapid expansion of generative AI adoption within the banking industry. In 2024, only 8% of banks had a systematic approach to developing generative AI, while 78% relied on tactical implementations. As institutions advance their execution strategies, they are shifting toward a structured approach to enhance services and introduce agentic AI capabilities.
The report also points to a growing divergence in financial performance among banks. Institutions that successfully reimagine their business models and execution processes will distinguish themselves from competitors. Additionally, 60% of surveyed banking CEOs recognize the necessity of assuming calculated risks to harness automation’s competitive advantages.
As digital banking continues to evolve, over 16% of global clients now prefer a fully digital, branchless banking experience. However, competition is moving beyond mass-market digital solutions toward value-added services such as embedded finance and tailored advisory offerings for affluent clients and small-to-medium enterprises (SMEs).
AI as a Catalyst for Transformation
Shanker Ramamurthy, Global Managing Director of Banking & Financial Markets at IBM Consulting, emphasized the industry’s shift from broad AI experimentation to targeted applications. “Financial institutions are entering a critical phase of transformation, leveraging generative AI to enhance customer experiences, streamline operations, mitigate risks, and modernize IT infrastructures,” he said.
The IBM report is based on sentiment analysis from C-suite leaders, consumer banking behavior, and economic data from major markets, including the United States, Canada, the European Union, the United Kingdom, Japan, China, and India.
IBM’s Role in Financial Services Innovation
As a leader in enterprise AI, hybrid cloud architecture, and financial sector security, IBM continues to support digital transformation across the banking landscape. Through IBM Consulting and its extensive fintech ecosystem, the company helps financial institutions navigate modernization efforts with AI-driven solutions and secure, scalable technologies.
For additional insights and to access the full IBM report, visit IBM’s Banking and Financial Markets Outlook.
