You’re probably familiar with AI, but did you know it could be your single biggest competitive advantage?
While AI has been around a while in the banking and capital markets (B&CM) sector, primarily in functions such as algorithmic trading and trade surveillance, it’s increasingly recognised as the most significant controllable opportunity for enhancing competitiveness.
AI enables banks to address scalability challenges without substantial increases in head count. Where you once needed a hundred additional trained staff to improve a specific function, AI now offers transformative capabilities at a fraction of the cost. This means banks can gain extensive operational capacity with minimal additional expense compared to traditional hiring practices.
AI is poised to usher in a paradigm shift in B&CM, creating new leaders; industry innovators are already moving beyond using AI to accelerate current business plans (instrument of strategy) to strategically shaping future business models around new AI capabilities (determinant of strategy).
This report highlights AI's impact and role within B&CM and provides critical considerations for its safe and effective implementation. It also discusses the advantages and constraints of AI, while forecasting its ongoing evolution.
In New Zealand's dynamic market landscape, embracing AI presents a significant opportunity to stay ahead of the competition in a rapidly evolving global economy.
Key insights for New Zealand: