CFS Survey: “What impact will agentic AI have on the financial industry?”

Background:

Agentic AI refers to AI systems that can think, learn and act autonomously. They use large language models to solve complex, multi-step problems with a high degree of independence (Fraunhofer). Many financial institutions are already using various AI tools to automate processes, reduce costs and offer innovative solutions to customers. What impact will the AI revolution have on the financial sector in the medium to long term?

Survey results:

More than 88% of surveyed professionals and executives in the financial sector report that their employer already uses AI tools. Around 40% state that AI is primarily used in customer-facing areas (retail and corporate banking), while approximately 30% to 35% report its use in central functions such as risk management, HR or legal/compliance.

About 55% of respondents expect employment in the financial industry to decline by 5% to 10% over the next five years, with more than 20% anticipating an even stronger decrease of 10% to 20%. This aligns with the panel’s assessment, according to which nearly 15% of respondents see a high or very high risk that their own role could be partially or fully replaced by AI within the next five years.

The use of AI is also changing the workplace. Nearly 60% of panelists report that their job has already been affected, while almost 40% have not yet observed any changes in their roles.

“The survey shows that AI is already widely used in the financial industry. At the same time, there is still considerable potential for more intensive adoption,” says Volker Brühl, Managing Director of the Center for Financial Studies.

Experiences with AI-generated work results are largely positive, with 72.6% rating them as positive or very positive. A key success factor for AI adoption is adequate training and upskilling of employees. The picture is mixed: while just over 50% feel well or very well prepared for working with AI, around 32% rate their level of preparation as only satisfactory.

“AI can significantly increase productivity. However, companies will need to make substantial investments in training,” Brühl adds.

The current regulatory framework for AI in the EU, shaped by the AI Act, remains subject to debate. While some observers consider it too restrictive, others argue it does not go far enough. The view among financial industry participants is clear: nearly 70% oppose further tightening of AI regulation.

“The financial industry has recognised the potential of AI and is already using it extensively with positive results. Concerns about job losses are as old as technological progress itself. AI is the right response to demographic challenges and increasing complexity. The potential for productivity growth is enormous. A key accelerator would be a regulatory framework that supports innovation and strengthens the competitiveness of institutions in Germany and the EU. This view is shared by a large majority of the industry, as the survey shows,” says Hubertus Väth, Managing Director of Frankfurt Main Finance e.V..