Banks eye responsible AI with global spend set for USD $67bn

A new report highlights how banking industry executives are using artificial intelligence (AI) to guide strategic transformation, outlining five key lessons for responsible and profitable adoption.

The report, from analytics provider SAS, draws on insights from leaders at banks including Banorte in Mexico, Intesa Sanpaolo in Italy, Millennium BCP in Portugal, and Old National Bank in the United States. With global spending on AI in banking forecast by IDC to reach nearly USD $67 billion by 2028, the study provides a look at how decision-makers are viewing AI's evolving role.

Business alignment

Bank executives emphasise that AI must be fully integrated into broader business strategy, rather than treated as a side project or implemented in isolated pockets within organisations.

"Innovation and AI must be recognised as a pillar of the institution's strategy," said Abraham Izquierdo, Managing Director of Trading and Treasury Risks at Banorte. "Leadership from the top is nonnegotiable."

José Miguel Pessanha, Chief Risk Officer at Millennium BCP, highlighted the practical applications for risk mitigation: "We are developing models to help us better prepare for adverse scenarios in the next five years. If an economic crisis arises, we can more effectively mitigate the effects of a rise in defaults."

People-focused approach

Despite rapid technological change, human judgement and leadership remain central. Industry leaders stressed the importance of investing equally in skills development and technological platforms.

"AI tools cannot definitively answer key questions: How will I minimise the impacts for the bank? What will be the risk strategy afterwards? This comes down to the creative problem-solving abilities of leadership," said Pessanha.

Andrea Cosentini, Head of Data Science and Responsible AI at Intesa Sanpaolo, explained the cultural changes underway at the Italian lender: "By recognising data-driven successes, we create a culture where data is valued as a strategic asset."

According to Cosentini, this cultural shift is having tangible social benefits: "By analysing historical loan data, Intesa Sanpaolo can develop new lending models for underserved segments, promoting financial inclusion."

Core infrastructure

Establishing a solid IT foundation is viewed as an essential prerequisite for sophisticated AI applications. Executives at Millennium BCP noted the challenge of harmonising data to meet diverse needs, such as capital calculations and risk management.

"We saw the need to harmonise our data to service different needs - from provisioning to capital calculations, liquidity calculations and interest rate risk," said Pessanha. "Walking before you run is essential."

Andrew McCammack, Data Science Officer at Old National Bank, commented on the importance of backend readiness: "GenAI is exceptionally helpful in developing a full code base. With this insight, we're driving a new wave of innovation."

Izquierdo of Banorte echoed the measured approach: "AI and cloud deployments must be multi-year and step-by-step. Recognise your long-term ambition, but set short-term, precise goals. Commit to a pace that maintains compliance and builds trust."

Empowering innovation

Giving technical teams access to AI-driven tools is increasing productivity and freeing up staff from manual tasks to focus on higher-value work. Examples shared in the report include Old National's use of AI to automate loan data processes.

"Microsoft Excel sheets don't even exist anymore," said McCammack. "Now, people have time for deep analysis that's more rewarding and valuable to the business."

Pessanha at Millennium BCP discussed the importance of questioning and hypothesis testing in arriving at new solutions. "We encourage an environment where asking 'why' is valued. Data scientists can then design experiments and models to test hypotheses and validate - or disprove - assumptions, potentially revealing breakthrough solutions."

Izquierdo highlighted Banorte's use of data-driven decision making: "We can make strategic decisions for the short term, medium term and long term based on facts, data and modelling. We're able to better pivot and respond directly to volatility or to complexity in markets."

Continuous learning

The report concludes that banks adopting AI must remain flexible and engaged, given the technology's constant evolution.

"We're looking to connect more with academics and startups to understand what they are focusing on," said Pessanha.

McCammack cited the strategic shift in application development at Old National: "We've started pursuing a strategy where we are building a whole suite of light applications, where AI is used to build the source code [...]. If you want to scale that and roll it out to the enterprise, you need a full code base, and GenAI is exceptionally helpful in developing it."

Cosentini reiterated the need for human oversight in AI deployment: "GenAI can fuel innovation by generating new ideas and solutions, helping us stay ahead of the competition and adapt to changing market conditions. However, its full potential is realised only when guided by human oversight, ensuring that creativity, responsibility and strategic judgment remain at the centre of the process."

Izquierdo mentioned how Banorte is leveraging generative AI: "Generative AI will play an important role for us in strengthening our cybersecurity posture and fostering business continuity."

Trust and governance

Stu Bradley, Senior Vice President of Fraud, Risk and Compliance Solutions at SAS, reflected on the delicate balance required for successful AI deployment in financial services:

"We've all heard the phrase 'trust is earned in drops and lost in buckets.' For banks, that saying rings especially true. Trust is financial services' most valuable currency - and its most fragile. AI can help banks strengthen trust when deployed responsibly, but without strong governance and guardrails, the risks rise faster than the rewards."

The report reinforces that banks are approaching AI not as a technology for technology's sake, but as a strategic tool integral to long-term growth, risk management, and customer service.