Generative AI to drive productivity gains of up to 46% in Indian banking operations by 2030: EY report

Customer service is the top priority, with 68% of firms prioritising it for GenAI implementation, followed by operations (47%), underwriting (32%), sales (26%), and IT (21%).

Mumbai: Generative AI (GenAI) is reshaping India’s financial services landscape, driving significant advancements in customer engagement, operational efficiency, and risk assessment, according to a report by EY.

The EY report titled How much productivity can GenAI unlock in India? The AIdea of India: 2025, highlights that GenAI is poised to improve productivity levels of Indian financial services by 34 per cent to 38 per cent by 2030 and up to 46 per cent, specifically for banking operations.

The EY study reveals that 74 per cent of financial firms have initiated proof-of-concept projects, and 11 per cent have moved to production-level deployments.

Investment in GenAI is also increasing, with 42 per cent of organisations actively allocating budgets toward AI initiatives. They are rapidly adopting GenAI across key areas such as voice bots, email automation, business intelligence, and workflow automation.

Customer service is the top priority, with 68 per cent of firms prioritising it for GenAI implementation, followed by operations (47 per cent), underwriting (32 per cent), sales (26 per cent), and IT (21 per cent).

These investments are already delivering measurable results: 63 per cent have seen improved customer satisfaction levels, while 58 per cent of firms report cost reductions.

Reflecting on the report findings, Pratik Shah, Partner and National Leader – Financial Services, EY India said, “The financial services industry has moved beyond innovation pilots to real-world implementation in 2024-25. Firms are integrating GenAI with core banking systems, including CRM, loan origination, card management platforms, among other areas. These efforts have led to a significant reduction in operational costs, with AI-driven solutions slashing the cost per unit of normal business activities to as low as 1/10th of traditional manual processes.”

“As firms move from pilots to large-scale implementations, the focus must shift from isolated use cases to enterprise-wide integration. The key to unlocking GenAI’s full potential lies in building robust AI governance, ensuring data security, and aligning technology with core business objectives. While NBFCs and mid-sized banks have demonstrated early success, large banks are now accelerating adoption. The coming years will define how effectively financial institutions can balance innovation with regulatory compliance to drive sustainable growth, operational excellence, and superior customer experiences,” he added.