Generative AI will transform financial services across banking, insurance, and wealth management, according to data and analytics company GlobalData.
The company says generative AI is advancing through distinct phases, offering transformative capabilities such as better decision-making, personalised services, and innovative product development. Backed by increased funding and adoption, GlobalData says generative-AI is set to drive unprecedented innovation and operational efficiency in the industry.
“Despite a downturn in the overall funding for financial services startups, the resilience of generative AI startups in financial services has been remarkable,” said GlobalData’s Head of Disruptive Tech Manish Dixit. “Funding in this sector surged over 30% from 2023 to 2024 YTD, indicating robust investor interest. This influx of capital presents significant opportunities for finance businesses to leverage generative AI, driving transformative capabilities and opening new avenues for growth and innovation.”
According to GlobalData’s Disruptor Intelligence Center, generative AI is improving operational efficiency, customer service, and risk management across financial services.
Banking and payments
Banks are collaborating with tech vendors to test generative AI. Use cases include AI-driven chatbots and synthetic data to enhance fraud detection and cyber resilience. From 2025 to 2030, generative AI is expected to provide predictive financial insights, support middle-office processes like risk assessment, and enhance operational efficiency and security. By 2031 and beyond, generative AI-driven advisors are expected to handle routine interactions, reserving human assistance for high-value transactions.
Insurance
Insurers are trialling generative AI to improve customer interactions and chatbot capabilities, gradually enhancing service delivery. Between 2025 and 2030, advanced AI models are expected to analyse claims data for better fraud detection and operational performance. By 2031, generative AI could offer real-time, human-like responses to customers, further streamlining customer service and workflows.
Wealth management
The wealth management sector is leveraging generative AI for personalised, human-like interactions, with early prototypes assisting advisors in compliance and advisory services. From 2025 to 2030, generative AI is likely to create personalised financial plans, dynamically adjust asset allocations, and automate compliance and onboarding processes. By 2031 and beyond, generative AI may enable full-service robo-advisors to autonomously manage portfolios based on client-defined risk tolerances, offering personalised and efficient wealth management services.
“Generative AI is vital in driving innovation in financial services, as the sector leads the way in exploring its potential, with use cases evolving from trials to widespread industry adoption,” said GlobalData Senior Disruptive Tech Analyst Mukesh Singh. “Generative AI is expected to improve the financial services sector capabilities by driving innovation and providing valuable solutions to customers. As technology develops, managing data privacy, ethical issues, and legal requirements could be essential for a successful rollout.”
