GenAI Projected to Inject $80 Billion into Indian Financial Services by 2030

By siliconindia  |  Monday, February 19, 2024

GenAI Projected to Inject $80 Billion into Indian Financial Services by 2030
India highlights the transformative impact of Generative Artificial Intelligence (GenAI) on India's financial services, anticipating a potential addition of $66-$80 billion to the Gross Value Added (GVA) by 2030. The Financial Services sector is expected to experience the most significant impact, ranging from 22% to 26% in GVA.
Survey participants emphasized two key focus areas for GenAI implementation: customer service enhancement and cost reduction. Around 61% of respondents in the financial services sector believe that GenAI will significantly optimize the entire value chain, making it more efficient and responsive to market dynamics.
Pratik Shah, Partner and Financial Services Consulting Leader at EY India, stated, "GenAI promises to revolutionize various facets of financial services, from customer acquisition to service and collections." Financial institutions globally are foreseeing a 5 to 10-year timeframe to fully leverage GenAI's potential, and Indian organizations are actively forming specialized cross-functional teams and allocating dedicated funds for GenAI deployments.
According to the report, 94% of respondents highlighted 'customer experience' as the aspect most affected by GenAI, followed by 'cost reduction' at 78%, and 'driving innovation' at 61%.
Abizer Diwanji, Head of Financial Services at EY India, emphasized the importance of promoting AI awareness and cultivating a culture that maximizes positive impacts while preventing misuse.
Regarding GenAI strategy execution, 83% of respondents plan to partner with external tech providers, while 67% express confidence in developing in-house capabilities, showcasing a strategic and collaborative approach within the industry.

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