According to a new survey conducted by Digital Realty,
over one-third of IT decision makers in the UK’s largest financial services
companies believe that AI will transform the industry in the next
decade, but the same percentage admit that their infrastructure is not prepared
for the transformation.
The survey unearthed that AI’s potential to transform
hugely outpaces other much-hyped technologies, with leaders naming blockchain
(21%), IoT (11%), application programming interface (API) platforms (10%), and
robotic process automation (RPA) (10%) falling behind AI in their
potential for the industry.
The financial benefits of these new technologies are
potentially huge but the ability of IT leaders to prepare their businesses for
these new technologies is restrained by budget (40%) and legacy infrastructure
(31%). The survey highlighted that across the UK, businesses need to invest a
total of £11.4 billion to be ready for these new technologies, but they will
need to do this in order to keep up with the challengers – identified
by 20% of IT leaders in the industry as their biggest technological challenge.
Digital Realty says that AI is going to revolutionise every industry, making businesses faster and cheaper to operate,
creating new opportunities and adding an additional estimated £10
trillion to global economic activity by 2030.
Processes already seen as the norm in the financial
services industry, such as fraud detection and stock trading, are made possible
by AI. Financial institutions are increasingly looking
to AI to aid customer communication, predictive analytics, trade
processing, and intelligent investment solutions.
To seize these opportunities, businesses will need to
meet new processing and interconnectivity demands. The challenge is leading
them to look to cloud and data centre partners for the purpose-built
infrastructure, rapid low-cost interconnection, and simple management of these
complex data environments that can underpin their AI ambitions.
Digital Realty and IDG research predicted
that in the next two years, 48% of large financial services businesses will
move their workloads to cloud wherever possible and just 27% expect their
workloads to remain on-premise.
Val Walsh, Senior Vice President, Portfolio Management
at Digital Realty, comments, “The financial services industry is set
to see some astonishing technological growth, and our new research demonstrates
that companies in the sector are still underprepared for what’s to come.
Technology like AI will greatly benefit the industry, but companies
can only experience the full benefits of the technological revolution if their
infrastructure is able to support these technologies.”