Article/Insight

Customers Growing More Optimistic about Potential of AI in Financial Services, But Skepticism Remains

Customers Growing More Optimistic about Potential of AI in Financial Services, But Skepticism Remains

It seems that financial services customers are technologically optimistic at heart.

While forecasts of artificial intelligence (AI) integrations often bring a gloom and doom, man vs. machine, dystopian dynamic, it seems that customers generally are encouraged at the prospect of further implementation of generative AI (GenAI) tools and solutions at their respective banks. To get a sense of just how optimistic they are, JD Power surveyed more than 2,000 financial services customers in the United States about their utilization and opinions of AI.

According to JD Power, 54% of all customers say they have used some version of a generative AI tool, and 32% say they have a complete understanding of AI. That level of comprehension and adoption has fueled a largely positive view of the technology, as 50% of customers are optimistic that AI will at least somewhat enhance their lives.

But an undercurrent of skepticism still exists, as customers can’t shake concerns about security, an increased risk of fraud, and loss of human support. The good news is that these fears provide financial institutions with a roadmap toward broader adoption for their AI solutions.

 AI Usage Rises, But Trust Issues Persist            

The use of AI chatbots among customers is on the rise. Overall, 54% of customers say they have used a GenAI tool. That level is significantly higher among national bank customers (66%) than regional banks (42%). Unsurprisingly, chatbot usage is higher among customers under the age of 40 (72%). 

Which if the following AI Chatbots do you use

When asked how confident customers feel about using AI chatbots for specific purposes, just 27% of customers said they trust AI for financial information and advice. When compared with other categories of advice, this ranks lower than travel information (37%), but slightly ahead of medical information (25%).

How much do you trust AI Chatbots you use to provide reliable

 

Understanding the Tech

Some of the above hesitation undoubtedly comes from a lack of understanding of how GenAI solutions work. Despite this tech becoming increasingly common, there is a widespread lack of comprehensive knowledge about GenAI. While most customers have used GenAI, just 32% of customers claim to possess a full understanding of AI solutions, a rate that is highest among those under 40 years old.

How well do you understand AI

While customers are confident that AI tools will provide some added convenience, they are a lot more skeptical about the positive impacts to their financial situation. While 72% of customers agree or strongly agree that AI tools will provide easy, convenient self-service in the near future, only 42% believe AI will improve personal finances. The difference highlights an important gap for financial services firms to close.

How much do you agree that the use of AI in FS will provide the following benefits in near feature

Finding the Opportunity

Customers are most likely to be receptive to personalized alerts and recommendations that can help them, but many are wary of allowing AI to control the actions and the application of personal security measures.

Nearly two-thirds (62%) of bank customers say they would immediately try AI-driven personalized account alerts to help avoid service charges and fees, 44% would use automated phone voice assistants to resolve a customer service problem, and 42% would take personalized product recommendations from an AI agent.

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Given the fact that customers are clearly open to AI tools, the onus is on financial institutions to communicate to their customers a clear understanding of how AI works and its benefits. These solutions can help customers and banks forge a symbiotic relationship to improve workflows and bolster personalized advice and alerts, but there must be buy-in from the customer to make that happen. By getting insights into how and when customers are most likely to use AI, banks can tailor their outreach accordingly. Those that do it well stand to win big with customers, both new and existing.  

Find out More

This Financial Services Intelligence Report is based on responses from 2,001 financial services customers nationwide and was fielded in April 2024. It was authored by Ila Ghosh, senior director of financial services intelligence at JD Power. Please contact us at the numbers below to connect with Ms. Ghosh or to learn more about the underlying research.

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected]

Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

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