Generative AI (GenAI) is reshaping India’s financial services landscape, driving significant advancements in customer engagement, operational efficiency, and risk assessment.
The EY report titled “How much productivity can Generative AI unlock in India?
The AIdea of India: 2025”, highlights that Generative AI is poised to improve productivity levels of Indian financial services by 34 percent to 38 percent by 2030 and up to 46 percent, specifically for banking operations.
The EY study reveals that 74 percent of financial firms have initiated proof-of-concept projects, and 11 percent have moved to production-level deployments. Investment in Generative Artificial Intelligence is also increasing, with 42 percent of organizations actively allocating budgets toward Artificial Intelligence initiatives.
They are rapidly adopting Generative AI across key areas such as voice bots, email automation, business intelligence, and workflow automation.
Customer service is the top priority, with 68 percent of firms prioritizing it for Generative AI implementation, followed by operations (47 percent), underwriting (32 percent), sales (26 percent), and IT (21 percent).
These investments are already delivering measurable results: 63% have seen improved customer satisfaction levels, while 58 percent of firms report cost reductions.
Reflecting on the report findings, Pratik Shah, Partner and National Leader - Financial Services, EY India said, “The financial services industry has moved beyond innovation pilots to real-world implementation in 2024-25.
Firms are integrating Generative AI with core banking systems, including CRM, loan origination, card management platforms, among other areas.
These efforts have led to a significant reduction in operational costs, with Artificial Intelligence-driven solutions slashing the cost per unit of normal business activities to as low as 1/10th of traditional manual processes.”
“As firms move from pilots to large-scale implementations, the focus must shift from isolated use cases to enterprise-wide integration.
The key to unlocking Generative AI’s full potential lies in building robust AI governance, ensuring data security, and aligning technology with core business objectives.
While NBFCs and mid-sized banks have demonstrated early success, large banks are now accelerating adoption.
The coming years will define how effectively financial institutions can balance innovation with regulatory compliance to drive sustainable growth, operational excellence, and superior customer experiences.”, he added.
The EY study, which analysed over 700 roles in the sector (more than 300 in banking and 400 in insurance) projects that Generative Artificial Intelligence will drive a 34 percent to 38 percent productivity improvement by 2030, paving the way for growth and operational transformation in the industry.
It is poised to significantly impact banking operations, customer service, and credit and collections.
As per EY’s industry labor efficiency analysis, Artificial Intelligence-driven efficiencies are projected to contribute an additional 9 percent to labour productivity in financial services by 2030, raising overall productivity levels in the sector to 34per cent-38 per cent.