TECH BUYER Feb 2021 - IDC MaturityScape Benchmark - Doc # US47433921

IDC MaturityScape Benchmark: Artificial Intelligence in Banking in the United States, 2021

By: Steven D’Alfonso, Marc DeCastroResearch Director, Consumer Banking, Jerry SilvaProgram Vice President

Abstract

This IDC study on artificial intelligence maturity is intended to offer a systematic and rigorous approach for organizations to assess their competency and maturity. To help financial institutions evaluate current artificial intelligence maturity and identify the steps they need to advance to the next stages of maturity, IDC developed the IDC MaturityScape for artificial intelligence in banking 1.0.

Key findings from this benchmark study include:

  • 49% of the financial institutions surveyed have an enterprisewide AI strategy that is aligned to business goals. These organizations have mature and consistent data readiness, governance, and technology across all AI initiatives. Many of these financial institutions have redesigned business models to repeatedly create new business value. In addition, most financial institutions have AI governance groups and associated policies for trust, ethics, and bias.
  • 40% of the financial institutions surveyed indicated that measuring business value/ROI is inconsistent or that a methodology has not been devised. The respondents were split between both survivors and thrivers. This indicates that even for those organizations that are AI thrivers, measuring the business value achieved from AI initiatives is a problem area.
  • Data acquisition and preparation showed the weakest level of maturity. 44% of financial institutions either had no companywide policy around data acquisition and preparation or individual data expert teams employed their own standards and tools. A third of financial institutions used bias assessments on limited data sets, with a small subset of those indicating that bias assessment is nonexistent. Further, a third of the financial institutions indicated that data definitions and lineage are known within a group for specific projects or are only know to a select few users, which is critical for transparency and auditability.

"The adoption of artificial intelligence in banking is growing as financial institutions accelerate digital transformation initiatives. Those institutions that have an AI-first approach across the enterprise and from the front office to the back office will drive better customer engagements, have accelerated rates of innovation, develop new business models, and achieve greater resiliency. Financial institutions must evaluate their vision and transform their people, processes, technology, and data readiness to extract maximum value from AI and thrive in the digital era," said Steven D'Alfonso, research director, IDC Financial Insights.


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