Customers of US banks are becoming more receptive to the concept of artificial intelligence (AI) in the financial industry, but only under specific circumstances.

In terms of AI's use in personal banking, 44% of US consumers are now satisfied, according to GFT's Banking Disruption Index. This is only true, though, as long as banks keep granting them access to information on how the technology is being utilized.

Artificial intelligence (AI) has applications in daily banking, such as shielding clients against online fraud. Currently, banks have undoubtedly been slower to integrate AI than fintechs and neobanks, who are releasing a variety of innovations for customers.

According to GFT, banks may still strategically apply AI if they can identify the highest-value use cases.

Interest in using AI in real-world applications is growing

It was discovered at the beginning of 2024 that most banking clients were still uneasy about AI's application in the industry. Notably, this resulted from the increasing usage of AI in fraudulent activities.

Financial institutions do, however, have a chance to use AI responsibly to drastically lower financial crime.

According to Vatsa Narasimha, CEO of ComplyAdvantage, "banks can take the lead on what we believe will be a key trend in 2024: explainability, namely the ability to demonstrate to their customers how and why AI models have taken decisions that affect them." Banks can use AI to identify fraud patterns, analyze networks, or streamline processes.

Customers are not yet prepared for AI to go too much beyond basic day-to-day banking skills, according to the GFT survey. It implies that in order to keep customers satisfied and trusting them, conventional banks should concentrate on improving current AI solutions in accordance with consumer demands.

Real-time fraud monitoring was selected by the majority of Americans questioned in the research (35%), when asked which features they would be most receptive to use in their daily banking. AI offers banks and consumers the chance to better safeguard funds, accounts, and personal information through fraud monitoring. This is especially important in light of the projected increase in fraudulent transactions that will affect the sector in 2023.

Saving money was mentioned as another top concern by consumers, with 90% of Americans seeking out innovative methods to do so. In light of the present crisis in the cost of living, GFT discovered that over one-third of respondents are keen for AI to assist them with everyday cost reduction and budgeting.

Similarly, 28% of participants indicated they would prefer automated processes for obtaining account updates, moving payments, and checking balances.

Changing to a more AI-driven perspective

According to Marco Santos, CEO of GFT Americas, banks are finally taking AI more into account in order to preserve client confidence.

He says, "For banks, retaining customers' business now requires more than just digital transformation—it also requires implementing AI." "While it might appear that competitors who are digital natives will have an advantage in the AI race, traditional banks are more than capable of using AI to improve the day-to-day tasks, fraud detection, and banking advice that consumers desire in their banking experience."

The combination of these optimized customer experiences and the long-standing security requirements of legacy institutions, he continues, "allows traditional banks to not only hold onto market share but also build a solid foundation with customers." They will be able to grow safely going ahead thanks to this.