Generative artificial intelligence (GenAI) is profoundly changing India's financial services industry, driving significant improvements in customer engagement, operational efficiency and risk assessment capabilities, according to the latest report released by EY. The report, titled "How much productivity can generative artificial intelligence release in India? AI Thinking in India: 2025", predicts that by 2030, the productivity of India's financial services industry will increase by 34% to 38%, while the banking industry will increase by as much as 46%. This trend shows that generative artificial intelligence is becoming the core driver of the transformation of India's financial industry.
The report further pointed out that 74% of financial institutions have launched proof-of-concept projects for generative artificial intelligence, and 11% of them have entered the production-level deployment stage. As technology matures, financial institutions' investment in generative artificial intelligence is gradually increasing, and 42% of organizations are currently allocating budgets for artificial intelligence projects. These organizations are rapidly adopting generative AI in key areas such as voice robotics, email automation, business intelligence and workflow automation to improve overall operational efficiency.
Among these investments, customer service has become a top priority for financial institutions, with 68% citing it as a key area for generative AI implementation. The second is operations (47%), underwriting (32%), sales (26%) and information technology (21%). These investments have achieved significant results: 63% of companies say they have improved customer satisfaction, while 58% report significant cost reductions. This shows that generative AI not only plays an important role in improving customer experience, but also shows great potential in optimizing operating costs.
Pratik Shah, partner and national leader of EY India’s financial services division, said: “The financial services industry has shifted from the innovation pilot phase to practical applications in 2024-25. The company is integrating generative AI with core banking systems to cover multiple areas such as customer relationship management, loan issuance, card management platforms. These efforts significantly reduce operating costs, and AI-driven solutions reduce the unit cost of traditional artificial processes to one-tenth of the traditional approach.” His views emphasize the practical application value of generative AI in the financial industry.
Pratic Sha further pointed out that as companies shift from pilot projects to large-scale implementation, the focus must shift from siloed use cases to enterprise-wide integration. To fully utilize the potential of generative artificial intelligence, the key lies in establishing a sound AI governance system, ensuring data security, and aligning technology with core business goals. Although non-bank financial companies and medium-sized banks have shown early success, large banks are also accelerating adoption of this technology. In the coming years, whether financial institutions can effectively balance innovation with regulatory compliance will become a key factor driving sustainable growth, operational excellence and high-quality customer experience.
The report also highlights that generative artificial intelligence is expected to increase productivity in India's banking sector by 46% by 2030, a figure highlighting the technology's huge potential in the financial industry. Additionally, 68% of financial companies view customer service as a priority in generative AI implementation, and large banks are accelerating adoption of this technology to reduce operating costs and enhance customer experience. These trends show that generative artificial intelligence is becoming an important engine for the future development of India's financial industry.