A new research report released on Monday found that 70% of American banking professionals believe that agentic AI will be a “game changer” and have a “significant” impact on the banking industry. Agentic AI refers to artificial intelligence that behaves like an ‘agent’ and can autonomously perform complex tasks.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The report is based on a survey of 201 bankers in managerial roles with at least moderate involvement in their organization’s AI efforts. The survey included professionals from retail and commercial banks, as well as credit unions, and was conducted from late July to mid-August.
According to voice AI company SoundHound (SOUN), which commissioned the report that was carried out by financial information provider Arizent, about 64% — or more than three in five — of larger Wall Street banks are testing or actively deploying the technology. They are closely followed by smaller institutions at about 38%.
Wall Street Embraces Agentic AI
Furthermore, the majority (94%) of respondents whose institutions were already deploying the technology believe in AI’s power to transform the sector, compared to just 2% who think Agentic AI is not valuable to their banks.
The report found that AI was broadly being deployed for customer service and call center operations in most cases (59%), followed by employee efficiency (39%). The technology is also being used at a significant level (37%) for fraud and risk management.
It is important to note that SoundHound AI’s report comes on the same day as another report by research and consulting firm Information Services Group (III), which also confirmed that organizations are experimenting with and adopting early forms of agentic AI. However, ISG noted that experimentation with the technology is far more common.
Watchdog Warns about Big Tech’s AI Dominance in Finance
Both reports come as JPMorgan Chase (JPM), the largest commercial bank in the U.S., has just rolled out its own AI system to help employees write year-end performance reviews. The bank’s in-house AI system, LLM Suite, is considered one of the most extensive efforts on Wall Street.
Meanwhile, the Financial Stability Board, the global financial system’s watchdog, recently reissued its warning that the risks of limiting AI supply to a few Big Tech companies remain as generative AI continues to be pervasive in finance globally.
In addition, SoundHound AI’s report found that security and compliance (51%) are among the key barriers to adoption, as stated by surveyed respondents. About half (51%) also believe that autonomy could be a challenge in adopting the technology.
What are the Best Bank Stocks?
As research shows that the adoption of agentic AI in banking is being met with a warm embrace, identifying good investment opportunities in the industry is essential. TipRanks’ Stock Comparison tool provides guidance in this regard, based on Wall Street analysts’ assessments.
Kindly refer to the graphics below.
