However, success relies more on strategy and trust than on speed alone. While those who adopt AI early often see stronger returns, the real advantage lies in moving with purpose rather than rushing in. Current developments indicate that the future of AI in banking will feel more human than mechanical.
At present, banks are ahead of industries such as healthcare, manufacturing and retail when it comes to adopting AI. The global AI market is expected to reach nearly $1 trillion by 2028, based on industry forecasts. In Australia, financial AI investment is projected to reach around $3.6 billion in 2024, reflecting a need for further scaling. Approaches vary across institutions. Some are investing in broad AI platforms, while others begin with smaller initiatives like AI bots powered by generative technology.
Not every tactic is delivering value. Efficiency is no longer a differentiator but a baseline expectation. Research shows that most Australians expect fast service backed by AI, and many are willing to switch providers when standards are not met. Yet, speed alone is not enough. Customers seek personalised and meaningful experiences over mere automation. A growing number of banks are seeing results by combining AI with human judgement, allowing staff to focus on empathy, context and guidance instead of repetitive tasks.
This is more than a technical upgrade. Generative AI is prompting banks to reimagine the customer experience instead of simply layering new tools onto old systems. The institutions achieving lasting success are those that embed AI into their overall strategy, prioritising insight, regulatory compliance and care across customer interactions. The quality of the experience has become the ultimate indicator of AI's effectiveness.
There are still significant challenges. Legacy systems, disjointed data and resistant workplace cultures remain major barriers. Even the most advanced AI models can struggle without organisational change. This is why many leading banks have introduced dedicated AI and data leadership positions that report directly to the CEO. It reflects how central these capabilities have become to innovation and customer satisfaction.
For Australian banks, long-term success goes beyond experimenting with AI tools. It requires a complete organisational shift built on defined strategy, steady investment and collaboration across departments. While AI offers considerable power, its true benefit lies in helping banks become more human, not less.
