91% of banks are endorsing Generative AI at board level

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91% of banks now endorse Generative AI at a board level, according to a new global study by NTT Data.

The comprehensive global banking research report, entitled “The Digital Horizon: Banking’s Shift from Mainframe to AI-Driven Cloud Infrastructure”, surveyed 650 global banking decision-makers, and revealed that generative AI is gaining widespread support at the board level, with 91% of respondents reporting endorsement of AI and cloud initiatives by the board.

Nevertheless, skill gaps remain a challenge, as 80% lack a strategic framework for generative AI adoption, highlighting the need for upskilling initiatives.

Cloud migration is increasingly viewed as an innovation enabler, with 36% of respondents citing flexibility and scalability as key drivers for cloud adoption.

Moreover, 45% of banks have already integrated Generative AI technology into their operations, while 30% are exploring its potential, demonstrating a proactive shift towards innovation in the banking sector.

The report also highlighted that banks are pivoting from entrenched mainframe systems to adopt AI and cloud technologies.

The research underscores the enduring presence of mainframe systems in the banking sector, with 63% of banking decision-makers still operating on mainframes despite identifying as innovators. However, there is a notable shift towards cloud migration, with 63% confirming that generative AI is facilitating the transition of banking applications to the cloud.

NTT DATA’s survey signals a paradigm shift in the banking industry, where the integration of generative AI into cloud migration strategies is poised to disrupt the longstanding dominance of mainframe systems.

The collaboration between AI’s ability to reinterpret legacy code and cloud technology’s scalability is accelerating modernisation and transformation initiatives, positioning banks for enhanced agility and competitiveness in the digital landscape.

Kaz Nishihata, Director and Senior Executive Vice President at NTT DATA Group Corporation, commented: “Banks are not only evolving technologically but also culturally. The industry’s rapid adoption of AI and cloud is redefining business models and establishing a new norm in sector leadership. This technological tide is propelling banks toward a more intimate understanding of customer needs, delivering services that are faster, more secure, and uniquely tailored.”

“The momentum for generative AI across the banking sector is a testament to the industry’s resolve to move beyond traditional mainframes, leveraging cloud environments to fortify security, enhance robustness, innovate, and boldly redefine. This transition promises a new era of innovation,” he continued.

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