Artificial intelligence is rapidly becoming a key part of banking and financial services operations, with companies moving beyond pilot projects and integrating AI into critical business functions. A new industry survey shows that BFSI firms are increasingly focusing on AI-led decision-making, real-time fraud detection and operational efficiency.
The report highlighted that financial institutions are now using AI across customer onboarding, collections, enterprise knowledge management, audit reviews, policy compliance and risk assessment. Industry experts said AI adoption in the sector has moved beyond chatbots and customer service tools and is now becoming part of core operations.
However, large-scale AI deployment still faces challenges. Companies pointed to issues such as fragmented data systems, legacy infrastructure, weak governance frameworks and data security concerns as major barriers to implementation.
“The biggest barrier to moving from experimentation to production is not technology readiness, but enterprise readiness,” said Ashish Mittal, Chief Technology Officer at Tata AIG General Insurance.
Experts noted that organisations successfully scaling AI are investing in unified data platforms, stronger governance frameworks, regulatory guardrails and workforce upskilling. The industry is also moving towards more transparent and responsible AI systems with greater focus on model governance and audit-ready processes.
The report found that some of the strongest benefits from AI deployments are currently being seen in customer service, collections and operational automation. Generative AI copilots used in software development and quality assurance are also delivering productivity gains of 30% to 40% for developers.
Industry leaders expect BFSI firms to follow a dual-track AI strategy in the coming years, balancing operational productivity with customer growth. Real-time fraud prevention, automated decision-making and predictive analytics are expected to become increasingly common as financial institutions continue expanding AI adoption across business functions.
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