BRG Report Finds AI Adoption in Financial Institutions Outpacing Risk Readiness

BRG announced in a press release that financial institutions worldwide are accelerating their use of artificial intelligence, but many are not fully prepared to manage associated risks or measure returns effectively. The report, titled AI in Financial Institutions: Staying Ahead in the AI Arms Race, is based on survey responses from executives leading AI initiatives.

According to the findings, 94 percent of respondents expect AI adoption to grow, particularly in areas such as customer service, corporate functions, and cybersecurity. However, only half believe their policies are adequate to manage risk within evolving regulatory frameworks. Many institutions also face challenges in establishing enterprise-wide governance and achieving measurable outcomes.

More than 60 percent of those surveyed reported using AI in cybersecurity, fraud detection, and corporate operations. Respondents anticipate the greatest increase in AI-related risk exposure will occur in fraud and financial crime, credit risk, and regulatory enforcement. The report highlights that while investments are concentrated in fraud prevention and cybersecurity, risks related to reputation and workforce impact are often underestimated.

The study notes that AI success is frequently measured through efficiency and cost reduction, rather than broader organizational transformation. BRG managing directors emphasized the need for institutions to think beyond automation and focus on how AI can enable new capabilities.