The real AI revolution is making banking more human
There is a link between moving early on AI adoption and return on investment. However, in the long run, it is not just about who moves first or spends the most, but who moves with purpose.
Artificial intelligence is seen as a cure-all that effortlessly streamlines operations and boosts productivity. This explains the technology’s rapid uptake; in less than three years, AI adoption has outpaced the rise of the internet, cloud computing and Customer Relationship Management platforms.
High rates of AI adoption are particularly visible in the financial services industry. The industry is now moving faster than almost any other - faster than retail, faster than healthcare, faster than manufacturing. According to International Data Corporation (IDC), the global AI market is forecast to hit almost $1 trillion ($965 billion) by 2028. With Australia’s investment expected to total just $3.6 billion this year, we have a lot of work to do to keep up.
But methods of adoption vary widely. Some institutions are investing in large-scale platforms while others are chasing quick wins with bots and co-pilots.
And while Deloitte research shows there is a link between moving early on AI adoption and return on investment, it is also important to note that in the long run, it is not just about who moves first or spends the most. Moving early and with good investment, combined with purpose, can drive longevity.
Think about when banks moved to the internet. Their first move was to make your paper balance available online. They didn’t rethink customer needs or the whole product. AI is another one of these inflection points. The question now is not whether to adopt AI but whether adoption can be done safely and meaningfully for customers.
Hammer looking for a nail
For some, AI has become a solution in search of a problem. But for banks, AI actually forces a strategic question, not just a question about technology or implementation. The strategic thinking starts with how banking can truly improve the lives of customers and the clients they serve.
Generative AI is transformational because it enables full redesign, not just incremental efficiency. It allows banks to reimagine strategy and customer experience in ways that were previously prohibitive. Starting with sharper questions accelerates novel solutions, not simply chatbots bolted on to outdated systems.
More AI, where it counts
Recent Salesforce research found 81 per cent of Aussies expect faster service thanks to AI and automation, and 72 per cent say they’ll switch brands if those expectations aren’t met. That’s not a marginal pressure; it’s an existential one.
Efficiency is table stakes, but banks are wary of the risks of not having humans in the loop.
Salesforce ANZ EVP and general manager Frank Fillmann says the answer is emerging. “Autonomous AI agents that work alongside employees at speed, accessing data, reasoning and operating within reimagined workflows is the breakthrough the financial services industry needs.”
Yet speed is only half the story. The real prize is trust. The more routine work AI takes on, the more human banking can become, where humans focus on context, anticipate customer needs, build confidence, and protect consumers.
Experience is the product
Organisations with a high Net Promoter Score consistently outperform competitors across a number of metrics, including customer lifetime value. Experience isn’t a by-product of AI; it must be the central measure of success.
AI should be deployed to radically improve the experience of both customers and employees rather than simply driving productivity gains. The ability to create interactions that are compliant by design and truly serve customer needs across products, channels and ecosystems will set the benchmark for satisfaction and loyalty.
In financial services, the most successful examples of AI implementation are the ones that are aligned with customer needs, reshaping how brands build trust and create lasting loyalty. Those that treat AI as cost-cutting alone risk eroding both trust and relevance. This shift is already visible in Australia. Several major banks have recently appointed new data, digital and AI leaders reporting directly to the CEO, elevating the connection between customers, data and channels.
It marks a break from traditional models, where these capabilities were scattered across competing business units and buried deep in organisational layers.
The hard part
Australian banks face real headwinds. Decades of technological debt, fragmented data, and legacy systems slow change. These foundations must be modernised or even the best AI will stall.
On top sits a workforce shaped by traditional ways of working, making even promising AI opportunities dependent on trade-offs and sustained cultural change.
AI transformation is not plug-and-play; it requires rewiring the way people work.
AI is a bet-the-business type opportunity.
The next step must be enterprise-wide alignment to strategy, investment in long-term capabilities and unlocking the barriers that exist between teams.
Without this, even the most advanced AI models will struggle to create meaningful impact for customers.
Meredith Wheelhouse is partner, banking sector growth lead at Deloitte Australia.
Abigail Holman is partner, AI & data banking sector lead at Deloitte Australia.
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