Generative AI is expected to have a significant impact on the Gross Value Added (GVA) in the financial services sector, contributing an additional $66 to $80 billion by 2030, according to a survey conducted by EY. The survey highlights that the BFSI sector has recognized the potential of Generative AI and most companies are either using it for at least one use case or planning a pilot within the year.

Customer service, cost reduction, and driving innovation are identified as key areas where Generative AI could be most useful. However, companies acknowledge the need to be better prepared to navigate this digital transformation.

The survey also points out the risks and challenges associated with Generative AI. Deploying a model involving Generative AI is complex, and companies face a widening skill gap due to a shortage of individuals possessing AI skills. Therefore, careful decision-making and implementation strategies are crucial for organizations after prioritizing the use cases.

Governments around the world are looking to promote and regulate AI technology, including Generative AI. However, there is no consensus on regulating it yet. To promote the development of Generative AI, policy actions must ensure access to data, which is crucial for training and improving AI algorithms.

In conclusion, Generative AI has emerged as a game-changer in the financial services sector, with the potential to significantly enhance Gross Value Added. The BFSI sector has already recognized this potential and is actively implementing Generative AI in various use cases. However, companies must overcome the challenges associated with skill gaps and complex deployment models to fully leverage the benefits of Generative AI.