Why is Generative AI a Must for European banks?
Generative AI is a disruptive technology that European banks must adopt. Larger banks hold a dominant position over other banks due to their superior risk management practices. These practices are better suited to assess, prepare, deploy, and maintain generative AI solutions for both enterprise and customer applications.
Our newest paper on Generative AI emphasizes the critical need for European banks to adopt this technology. This publication aims to guide and encourage banks to leverage GenAI to stay competitive and innovative in the evolving financial landscape.
European banks are facing multiple challenges:
- Banking regulations have a significant impact on capital, productivity, and growth. Banks are currently grappling with a complex regulatory equation, alongside a radical transformation of the entire banking ecosystem in Europe.
- Banks are facing heightened competition from non-banks and neobanks from both domestically and internationally.
- The level of adaptation needed to face these challenges from both a human resource and technological perspective is unprecedented.
- Generative AI, a very significant technological disruption, is emerging with a high rate of adoption, unlike any other technological disruption banks have faced in the past.
These challenges can be addressed by looking at compliance with regulations as part of the solution, where banks will operate within a more uniform and regulated landscape. Banks will embrace GenAI with risks and enablers in mind as they notably excel in risk management practices, which is set to become a key competitive differentiator against smaller banks.
– Generative AI will help banks optimize their productivity costs and enable business growth simultaneously. The concerns the banks have today about GenAI will fade in the future thanks to some key enablers that will de-risk GenAI applications, and regulation plays an essential role as one of these key enablers, concludes Philippe Santraine from Samlink Advisory Services.