Fintechs And Bigtechs Share The Spoils As Gen AI Reshapes Financial Services

Since OpenAI launched ChatGPT-4, the biggest names in technology as well as myriads of wannabe start-ups have scrambled to create marketable solutions powered by generative AI.

It didn’t take long for the analysts to work out that financial services is the sweet spot for gen AI. Banks, insurers and capital markets firms are a lot more complex than the average manufacturer or retailer, with a large proportion of processes that lend themselves to automation or augmentation (see the chart below). They are also subject to more regulation, with a compliance burden that demands a vast amount of data and manual effort. And then there’s the fact that financial services involves an awful lot of language tasks, which gen AI can handle without breaking a sweat.