Survey: Most banks prioritizing cybersecurity in age of AI

Most banks are instituting security measures to account for the large rise in artificial intelligence, according to a recent survey from auditing firm KPMG. .Eighty two percent of banks were implementing strong security measures to ensure data compliance for generative AI. Seventy seven percent were conducting regulator audits, while 73 percent were more comprehensively training employees on data security. More than 80 percent of banks have at least pilot programs for cybersecurity use cases for generative artificial intelligence, according to KPMG. The vast majority of banks are at similar stages with fraud use cases, according to the report. Forty two percent of banks expect generative AI will free up 21-40 percent of employees’ time for value-added work, according to the report. Thirty four percent expect the technology will free up 6-20 percent of their time. “While addressing near-term defensive priorities and customer experience upgrades will shield banking franchises for now, long-term modernization in data, infrastructure, payments and AI will bring the struPectural change and true differentiation banks need to operate in a radically different marketplace,” said Peter Torrente, U.S. sector leader for KPMG LLP. According to the survey, the top five investment portfolios for banks in the coming 12 months include:Data-driven insights and personalization: 91 percent. Security and fraud prevention: 89 percent.Complaints and disputes: 88 percentOperational efficiency and automation: 88 percent.Regulatory compliance and risk management: 85 percent. “Risk and uncertainty are the new normal,” Torrente said. “Rather than retrench from technology spending, banks have recognized the strategic necessity of technology-led evolution in the face of growing competition and operational threats.”