New research from Capgemini reveals 80% of retail bank executives believe that generative artificial intelligence (AI) represents a significant leap in advancing AI technology

But only 6% of retail banks are ready with a roadmap and key performance indicators for enterprise-wide AI-driven transformation at scale. This involves the strategic application of advanced technologies such as AI, machine learning and generative (gen) AI to drive innovation and efficiencies.

Productivity and efficiency dominated the priority list of the 250 banking leaders surveyed. As a result of macroeconomic uncertainty, many retail banks are being forced to make strategic decisions to navigate challenges to their existing business models.

Globally, only 4% of them achieved a high score on business commitment and technology capabilities, while 41% scored average, indicating a widespread lack of readiness to embrace and effectively implement intelligent transformation.

Regional disparities further underscore this issue. In North America, 27% of banks displayed low readiness, followed by Europe with 31%. Asia-Pacific (APAC) lagged significantly with 48% of banks scoring low.

Focusing on intelligent solutions embedded with AI-driven capabilities will allow retail banks to navigate ongoing structural challenges, ultimately ensuring sustainable growth.

Capgemini global industry head of retail banking and wealth management Nilesh Vaidya explained: “Generative AI can have a lighthouse effect when used responsibly and wisely across operations. Success will come down to developing a roadmap that balances hype with a pragmatic, traceable and measurable approach.”