Financial services execs investing in generative AI: report

Many professionals were also concerned about cybersecurity threats

Quantum computer

Financial services executives in Canada are ahead of their global peers when it comes to investment in generative artificial intelligence (AI).

Over one-third (38%) of Canadian financial services executives said they’re investing in generative AI, according to a report from Broadridge released on Thursday. That compares to 24% of executives globally.

Generative AI learns the patterns and structures of input training data to generate new output with similar characteristics, such as videos, images and text.

While three-quarters of executives globally were confident about their firms’ digitalization generally, Broadridge found that the leaders had made gains in talent and culture initiatives compared to the non-leaders. For example, 44% of leaders were making moderate to large investments in generative AI, which was more than twice the number of non-leaders.

In Canada, 28% of respondents said they’ll increase their investment in AI over the next two years, and nearly eight in 10 (79%) agreed that AI will lead to significant improvements in customer service. Top priorities for front office included customer interaction, portfolio management and product development.

However, 43% of Canadian respondents were worried that growing cybersecurity threats will impact their digital transformation. Data security and privacy was a top corporate and IT priority for many firms globally.

The survey was conducted in November 2023 and included 500 C-suite executives, and their direct reports, from 18 countries. The assets under management of companies sampled ranged from US$1 billion to US$250 billion.