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Banks shift AI focus as back-end tools drive ROI, research reveals

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By Puja Sharma

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GFT’s Report Reveals 68% of AI-Generated ROI is Coming from Banks’ Back Office Capabilities, Not Consumer-Facing Tools

AI has become a top investment area for the majority of Canadian banks, consumer-facing delivers is coming from an unexpected place, according to a new report released today. Part 1 of the two-part Banking Disruption Index from global AI and digital transformation company GFT finds that while 99% of banks are placing focus on consumer-facing AI solutions, only 32% have seen significant return on investment from those efforts. Instead, the most impactful AI deployments are happening behind the scenes, with 68% of banks citing internal capabilities as the greatest value driver.

According to GFT’s report, the top area that AI is benefiting banks is in security with the automation of internal fraud detection and cybersecurity monitoring (45%). With banks already spending 35% of their IT budgets on AI – and planning to increase that figure by 20% over the next five years – banks may need to shift where their AI focuses lie to drive maximum productivity and revenue in order to compete in an increasingly saturated market.

While customer facing AI capabilities should be a consideration in financial institutions’ broader AI transformation is essential to scaling in the future as AI continues to evolve. The Banking Disruption Index reveals that banks are aligned with this ideology, with the number one goal they want to achieve with AI being operational efficiency. However, more than half (68%) are still currently focused on AI-driven customer service. The report highlights key areas where this is evident and where challenges remain:

  • Investment banks are finding some value in front-office AI, but the real opportunity is with internal operations. While 76% are using AI for customer service and 42% are investing in personalised banking and marketing, only 26% have seen meaningful ROI from customer support automation—and none from personalisation efforts. Although only one-third have implemented AI in internal operational functions, the 58% that have, say those back-office applications are delivering the greatest value.
  • Retail banks are prioritising customer experience, but those AI investments aren’t yet performing. Most retail banks (67%) have invested in AI to improve customer service, yet only 18% report seeing measurable results. While 28% of retail banks cite customer experience as a top priority, only 37% report high satisfaction with their current AI offerings. In contrast, nearly two-thirds have seen significant return from back office capabilities like cybersecurity monitoring and automating administrative tasks.
  • Nearly every bank across all sectors have seen measurable return on AI investments, but some challenges remain. 99% of banks reported significant ROI on their AI investments in some capacity– though most did note some hurdles with widespread adoption. Cybersecurity (49.5%) and data privacy (37.5%) were listed at the top concerns, followed by high implementation costs (32.5%), a lack of skilled personnel (29%), and legacy IT infrastructure (27%). 21% did admit there was lack of clarity around ROI.

“The continuing evolution of AI technology presents a world of opportunity to banks, but in order to effectively harness that power, the institutions first need to understand where exactly in their business AI will be the most beneficial,” said Andre Gagne, CEO of GFT Canada. “What we are continuously seeing through our on the ground work with financial institutions is that in order for banks to stay competitive, operational excellence is key. While customer-facing tools are a great way to improve relationships, to truly see gains that impact the bottom line, banks should turn their focus inward to their day to day processes.”

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Exclusive | Cyberport may use Chinese GPUs at Hong Kong supercomputing hub to cut reliance on Nvidia

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Cyberport may add some graphics processing units (GPUs) made in China to its Artificial Intelligence Supercomputing Centre in Hong Kong, as the government-run incubator seeks to reduce its reliance on Nvidia chips amid worsening China-US relations, its chief executive said.

Cyberport has bought four GPUs made by four different mainland Chinese chipmakers and has been testing them at its AI lab to gauge which ones to adopt in the expanding facilities, Rocky Cheng Chung-ngam said in an interview with the Post on Friday. The park has been weighing the use of Chinese GPUs since it first began installing Nvidia chips last year, he said.

“At that time, China-US relations were already quite strained, so relying solely on [Nvidia] was no longer an option,” Cheng said. “That is why we felt that for any new procurement, we should in any case include some from the mainland.”

Cyberport’s AI supercomputing centre, established in December with its first phase offering 1,300 petaflops of computing power, will deliver another 1,700 petaflops by the end of this year, with all 3,000 petaflops currently relying on Nvidia’s H800 chips, he added.

Cyberport CEO Rocky Cheng Chung-ngam on September 12, 2025. Photo: Jonathan Wong

As all four Chinese solutions offer similar performance, Cyberport would take cost into account when determining which ones to order, according to Cheng, declining to name the suppliers.



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Why do AI chatbots use so much energy?

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In recent years, ChatGPT has exploded in popularity, with nearly 200 million users pumping a total of over a billion prompts into the app every day. These prompts may seem to complete requests out of thin air.

But behind the scenes, artificial intelligence (AI) chatbots are using a massive amount of energy. In 2023, data centers, which are used to train and process AI, were responsible for 4.4% of electricity use in the United States. Across the world, these centers make up around 1.5% of global energy consumption. These numbers are expected to skyrocket, at least doubling by 2030 as the demand for AI grows.



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AI Transformation (AX) using artificial intelligence (AI) is spreading throughout the domestic finan..

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AI Transformation (AX) using artificial intelligence (AI) is spreading throughout the domestic financial sector. Beyond simple digital transformation (DX), the strategy is to internalize AI across organizations and services to achieve management efficiency, work automation, and customer experience innovation at the same time. Financial companies are moving the judgment that it will be difficult to survive unless they raise their AI capabilities across the company in an environment where regulations and competition are intensifying. AX’s core is internal process innovation and customer service differentiation. AI can reduce costs and secure speed by quickly and accurately handling existing human-dependent tasks such as loan review, risk management, investment product recommendation, and internal counseling support.

At customer contact points, high-quality counseling is provided 24 hours a day through AI bankers, voice robots, and customized chatbots to increase financial service satisfaction. Industry sources say, “AX is not just a matter of technology, but a structural change that determines financial companies’ competitiveness and crisis response.”

First of all, major domestic banks and financial holding companies began to introduce in-house AI assistant and private large language model (LLM), establish a dedicated organization, and establish an AI governance system at the level of all affiliates. It is trying to automate internal work and differentiate customer services at the same time by establishing a strategic center at the group company level or introducing collaboration tools and AI platforms throughout the company.

KB Financial Group has established a ‘KB AI strategy’ and a ‘KB AI agent roadmap’ to introduce more than 250 AI agents to 39 core business areas of the group. It has established the ‘KB GenAI Portal’ for the first time in the financial sector to create an environment in which all executives and employees can utilize and develop AI without coding, and through this, it is efficiently changing work productivity and how they work.

Shinhan Financial Group is increasing work productivity with cloud-based collaboration tools (M365+Copilot) and introducing AI to the site by affiliates. Shinhan Bank placed Generative AI bankers at the window through the “AI Branch,” and in the application “SOL,” “AI Investment Mate” provides customized information to customers through card news.

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Hana Bank is operating a “foreign exchange company AI departure prediction system” using its foreign exchange expertise. It is a structure that analyzes 253 variables based on past transaction data to calculate the possibility of suspension of transactions and automatically guides branches to help preemptively respond.

Woori Financial Group established an AI strategy center within the holding under the leadership of Chairman Lim Jong-ryong and deployed AI-only organizations to all affiliates, including banks, cards, securities, and insurance.

Internet banks are trying to differentiate themselves by focusing on interactive search and calculation machines, forgery and alteration detection, customized recommendations, and spreading in-house AI culture. As there is no offline sales network, it is actively strengthening customer contact AI innovation such as app and mobile counseling.

Kakao Bank has upgraded its AI organization to a group and has more than 500 dedicated personnel. K-Bank achieved a 100% recognition rate with its identification card recognition solution using AI, and started to set standards by publishing papers to academia. Toss Bank uses AI to determine ID forgery and alteration (99.5% accuracy), automate mass document optical character recognition (OCR), convert counseling voice letters (STT), and build its own financial-specific language model.

Insurance companies are increasing accuracy, approval rate, and processing speed by introducing AI in the entire process of risk assessment, underwriting, and insurance payment. Due to the nature of the insurance industry, the effect of using AI is remarkable as the screening and payment process is long and complex.

Samsung Fire & Marine Insurance has more than halved the proportion of manpower review by automating the cancer diagnosis and surgical benefit review process through ‘AI medical review’. The machine learning-based “Long-Term Insurance Sickness Screening System” raised the approval rate from 71% to 90% and secured patents.

Industry experts view this AI transformation as a paradigm shift in the financial industry, not just the introduction of technology. It is necessary to create new added value and customer experiences beyond cost reduction and efficiency through AI. In particular, it is evaluated that the differentiation of financial companies will be strengthened only when AI and data are directly connected to resolving customer inconveniences.

However, preparing for ethical, security, and accountability issues is considered an essential task as much as the speed of AI’s spread. Failure to manage risks such as the impact of large language models on financial decision-making, personal information protection, and algorithmic bias can lead to loss of trust. This means that the process of developing accumulated experiences into industrial standards through small experiments is of paramount importance.

[Reporter Lee Soyeon]



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