The Growing Trend of AI Partnerships in Banking and Insurance
As financial institutions increasingly recognize the transformative potential of artificial intelligence (AI), many banks and insurance companies are opting to collaborate with external vendors rather than developing AI solutions in-house. According to a recent survey conducted by the Capgemini Research Institute, two-thirds of over 1,000 respondents affirmed they are leveraging external partnerships for AI expertise and cloud-based platforms.
Strategic Collaborations for Enhanced AI Solutions
A noteworthy example of such collaboration is visible in the health insurance sector. Vitality, a prominent health insurance fund, has recently strengthened its partnership with Google to launch an innovative AI platform aimed at empowering individuals to make informed health and lifestyle choices.
In a similar vein, Mitsubishi UFJ Financial Group (MUFG), Japan’s largest bank, aspires to evolve into an AI-native organization. By adopting agentic AI, MUFG plans to transform its data management and has entered strategic partnerships with industry leaders like OpenAI and Sakana AI, marking a significant shift in its operational approach.
AI Agent Development Landscape
The survey revealed that only 33% of financial institutions are actively developing proprietary AI agents. Nearly half (49%) combine in-house initiatives with vendor solutions, while a mere 15% purchase off-the-shelf AI agents. This landscape highlights a significant reliance on external expertise as institutions navigate this technologically advanced era.
Projected Economic Growth from AI Agents
The Capgemini Research Institute projects that AI agents could generate a staggering $450 billion in economic value by 2028. With only 10% of banks and insurers currently deploying AI agents at scale, there lies immense potential for growth and innovation in this sector. The report indicates that 80% of financial service companies are still in theidea or pilot stage of AI deployment, revealing abundant opportunities for strategic advancements.
Emphasizing Long-Term Strategies
Ravi Khokhar, Capgemini’s global head of cloud for financial services, emphasizes the need for financial institutions to adopt a long-term perspective as they integrate AI agents alongside human input. He states that distinguishing between hype and substance is crucial in realizing the full potential of AI technologies.
Advantages of AI in Financial Services
The survey showcased that 75% of banks utilize cloud-native AI agents for customer service, while 64% employ them for fraud detection and loan processing. In the insurance industry, 70% use AI agents for customer service, 68% for underwriting, and 65% for claims processing. These statistics underline the growing reliance on AI technology to enhance operational efficiency and customer experiences.
Addressing Skills Gaps and AI Governance
Despite the widespread implementation of AI, the survey highlights a skills gap; about 92% of executives acknowledge a lack of relevant expertise among business leaders. To counter this, approximately 48% of organizations are creating supervisory roles specifically for AI agents. Furthermore, 46% of respondents are actively reskilling employees and reallocating their strengths to different divisions to foster an adaptable workforce.
Human Oversight Remains Vital
Lloyd Scholz, chief technology officer at Markel insurance, emphasizes the importance of maintaining human oversight, particularly in regulated environments. He notes that trust, explainability, and governance are critical components in the deployment of AI technologies, ensuring that automation complements rather than replaces human judgment.