Financial firms keen to use AI but their data isn't ready

A new study into AI readiness shows that while financial services firms are ready to adopt AI, they still have work to do in terms of improving data quality and modernizing systems.

The study from Indicum finds many financial services firms are hindered by legacy data systems and outdated IT infrastructure, which often lack the real-time processing and data quality capabilities required for effective AI deployment.

Data infrastructure is outdated or aging prior to embarking on a systems modernization effort according to 52 percent of IT pros in financial services firms, compared to 44 percent of IT pros in non-financial services firms who say their data infrastructure needed an upgrade.

In terms of goals 72 percent of IT pros in financial services firms say the goal of their data systems modernization initiative was preparing data for use in AI tools and apps, and 72 percent say the goal was improving data integration across platforms. Compared to 70 percent of IT pros in non-financial services companies who say their goal was preparing data for use in AI tools and apps, and 65 percent say it’s improving data integration across platforms.

Only 44 percent of IT pros in financial services firms said they were ‘somewhat prepared’, at best, to use their data in AI tools and apps prior to beginning a data modernization project (compared to 48 percent in other businesses), with 46 percent saying they are unprepared due to data quality or governance issues (40 percent elsewhere).

Businesses are pushing ahead though, 67 percent of IT pros in financial services firms say they now have AI-driven solutions in production across multiple departments, and 32 percent are in pilot or experimental stages. 59 percent say they are using AI for back-office process automation (e.g. Finance and HR operations), and 56 percent are using AI for data governance and quality management. This compares to a slightly lower number (61 percent) of IT pros in non-financial services firms who have AI-driven solutions in production across multiple departments, with 33 percent in pilot or experimental stages. And 59 percent using AI for data governance and quality management.

Some 74 percent of IT pros in financial services firms say they are focused on rapidly scaling data-driven AI initiatives across departments in the next two to three years, while 68 percent say they were focused on using AI for select business functions.

The value of training is recognized too, 70 percent of IT pros in financial services firms say that improved internal training would accelerate their company’s AI and data modernization efforts, and 46 percent say better collaboration with external partners and vendors would help.

“The survey confirms what we are hearing from customers: data quality and modernized data systems are the key to AI success,” says Matheus Dellagnelo, CEO of Indicium. “Companies across industries are eager to adopt AI but running into roadblocks with outdated data systems. A strong data foundation unlocks meaningful progress, accelerates AI impact, and strengthens competitiveness. Organizations that invest in modernizing their data infrastructure are better positioned to deploy AI today and expand its value over time.”

The full report is available from the Indicum site.

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