Small Banks Lead Peers in AI Readiness but Struggle to Scale

Sep 26, 2026
A SAS and IDC study finds small financial institutions lead similarly sized organizations in AI readiness, but infrastructure, security and compliance barriers limit wider adoption.

SAS said in a press release that small banks, credit unions and lenders lead similarly sized organizations in several other industries in AI readiness, although institution wide adoption remains limited. The study, conducted with research and analysis by IDC, surveyed 1,600 small and midsized business leaders across 28 countries.

Among small financial institutions, 64% use AI in IT, compared with 47% in finance and risk, 44% in marketing, 42% in customer service and 39% in product development. Infrastructure is not ready or is too costly for broader deployment at 39% of respondents, while 40% cite security, privacy and compliance as the main barriers to scaling AI.

Another 33% cite the lack of a unified data, analytics and AI platform as a challenge. Near term priorities include automating core processes and reducing costs, each cited by 30%, followed by improving data quality and integration at 28%.

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