Mumbai, March 12, 2025 – A new report by EY reveals that Generative AI (GenAI) is set to revolutionize India’s financial services sector, significantly enhancing customer engagement, operational efficiency, and risk assessment. The report, titled “How much productivity can GenAI unlock in India? The AIdea of India: 2025,” projects that GenAI will boost productivity in Indian financial services by 34-38% by 2030, with banking operations specifically seeing potential gains of up to 46%.
The EY study highlights that 74% of financial firms have already started GenAI proof-of-concept projects, and 11% have moved to production-level deployments. Additionally, 42% of organizations are actively allocating budgets towards AI initiatives. These firms are rapidly integrating GenAI into key areas such as voice bots, email automation, business intelligence, and workflow automation.
Customer service is a top priority for GenAI implementation, with 68% of firms focusing on it, followed by operations (47%), underwriting (32%), sales (26%), and IT (21%). These investments are already yielding results, with 63% of firms reporting improved customer satisfaction and 58% reporting cost reductions.
“The financial services industry has moved beyond innovation pilots to real-world implementation in 2024-25,” said Pratik Shah, Partner and National Leader – Financial Services, EY India. “Firms are integrating GenAI with core banking systems, significantly reducing operational costs.”
Key Productivity Gains Projected:
- Banking operations: Up to 46% by 2030
- Sales and customer service: 38-40%
- Credit and collections processes: 34-36%
- Insurance customer service: 48% increase in efficiency
The report also notes that while NBFCs and mid-sized banks have shown early success, large banks are accelerating adoption. However, scaling GenAI comes with challenges, including regulatory and cybersecurity requirements, data localization mandates, and data privacy concerns.
Despite these challenges, the financial sector is poised for a new era of innovation, efficiency, and customer-centric growth as it continues to integrate GenAI into core systems.
