What changed
Forrester Research’s report, Predictions 2027: Banking and Investing, highlights a significant shift in the financial services industry.
The report, based on data from 915 respondents in the U.S., U.K., and Canada, predicts that AI will reshape how financial firms acquire customers and provide advice.
The report identifies key transitions, including automation in financial discovery and guidance journeys, and emphasizes that while one-third of banks will announce AI transformation programs, only 5% will succeed.
What this means in practice
The report suggests that AI will become the primary source of value creation in financial services by 2027. AI assistants are expected to reshape how customers discover, evaluate, and act on financial products.
However, Forrester warns that many banks may rebrand existing AI initiatives as AI-native without substantial changes to their operational infrastructure.
This could hinder the ability to scale AI deployment, a challenge that AI technology providers like Dell Technologies Inc. are addressing with their clients.
Limitations and availability
Forrester’s prediction of a 5% success rate is based on the belief that legacy processes and operating models will limit the scalability of AI in financial services.
Dell’s CFO, David Kennedy, noted that while AI has proven to be effective, the challenge lies in implementing it at scale.
Financial institutions are also expected to pursue scale through mergers and acquisitions, with Forrester predicting a 50% increase in AI banking technology M&A in 2027.
AMD’s Suresh Andani highlighted the need for hybrid computing environments to support AI deployment, both in the cloud and on-premises.
The supplied announcement does not specify the exact criteria for determining the 5% success rate or the specific metrics used to evaluate AI transformation programs.
