NEW DELHI: Generative artificial intelligence (GenAI) is set to boost Indian financial services and is expected to potentially add USD 66-USD 80 billion to the GVA (Gross Value Added) by the year 2030, a new report said on Monday.
According to the latest EY India report, GenAI's impact on the GVA within the Financial Services sector is most significant, ranging from 22 per cent to 26 per cent.
In the report, a majority of survey participants highlighted focus on two key areas -- customer service and cost reduction.
About 61 per cent of respondents in the financial services sector believe that GenAI will have a huge impact on the entire value chain, making it more efficient and responsive to market dynamics.
"GenAI promises to revolutionise various facets of financial services, from customer acquisition to service and collections. Globally, financial institutions foresee a timeframe of 5 to 10 years to fully leverage the potential of Gen AI," said Pratik Shah, Partner and Financial Services Consulting Leader, EY India.
"In alignment with this, Indian financial services organisations are proactively forming specialised cross-functional teams and allocating dedicated funds for Gen AI deployments," he added.
When asked which aspects of the company GenAI would most affect, 94 per cent said 'customer experience', 78 per cent said 'cost reduction', and 61 per cent said it would have the greatest impact on 'driving innovation', the report noted.
"Financial firms must promote AI awareness and cultivate a culture that increases its potential for positive impact, while curtailing misuse," said Abizer Diwanji, Head -- Financial Services, EY India.
When asked about executing their GenAI strategy, about 83 per cent said they expect partnering with external tech providers whereas 67 per cent expressed confidence in developing LLMs/in-house capabilities, according to the report.