Survey: Most banks expect, preparing for AI disruption

Banking leaders expect and are preparing for artificial intelligence to “significantly disrupt” their operating and business models in the next five years, according to audit, tax and advisory firm KPMG LLP..Released June 17, the 2026 Banking Technology Survey included feedback from 200 community and regional banking executives on how financial institutions are establishing IT, data and transformation priorities. Despite only 32 percent of bank executives reporting using AI-enabled biometrics to secure payments and access management, 72 percent expect to use the technology over the next three years, according to the report. Seventy-one percent said their organizations needed to invest in modernizing platforms to onboard products and services, up from 46 percent in 2025. Seventy-six percent reported an increase in the number of cybersecurity attacks in the last 12 months, with the vast majority increasing their budgets to address that risk. Eighty-four percent are increasing their investment in cybersecurity to address AI-introduced risks. Sixty-three percent of banks listed AI-introduced vulnerabilities in code as the top emerging threat, followed by 62 percent who cited deepfakes; 57 percent who listed AI bots; and 50 percent who reported securing agentic technologies. Banks, to protect data security, privacy and compliance, reported implementing regular audits, strong security measures and collaborating with experts outside their organization. According to KPMG, executives cited technology as a central M&A consideration, with 77 percent seeing it as a main driver or one of multiple major factors in their acquisition strategy over the next three years. Two-thirds listed acquiring data, analytics or AI capabilities as their top technology-related M&A objective, followed by 65 percent who looked to strengthen cybersecurity or risk capabilities. “What we’re seeing across the banking sector is a convergence of priorities — AI, payments modernization, cybersecurity, and tech-driven M&A are no longer separate agendas,” said KPMG US Banking Sector Leader Peter Torrente. “That shift exposes the challenge to keep pace across technology, risk, and growth simultaneously.”