Despite the growing popularity of artificial intelligence (AI), Dublin-based professional services company Accenture found that only 10 percent of banks in the Asia-Pacific (APAC) region are equipped to reap the full benefits of AI.

In its report, Accenture surveyed 93 banks in the APAC region, where it learned that only a fraction has made long-term investments in AI across their operations.

AI-ready banks, described in the report as fast followers and front runners, are also building the necessary data infrastructure and talent practices to realize optimal growth and productivity improvements.

Accenture Senior Managing Director Masashi Nakano said the combination of AI readiness and strong trust in talent creates a competitive advantage for financial institutions.

“CEOs [chief executive officers] who successfully orchestrate this alignment and act with urgency can drive their organizations forward, capitalizing on emerging opportunities and staying ahead in the AI landscape,” he said.

Based on Accenture’s analysis, 10 percent of AI-ready banks made “strategic bets” on specific AI use cases most relevant to their respective customers.

“They are ahead of their peers on the data maturity curve and have a more mature foundation models practice, with some scaling the use of AI agents in specific processes,” it said.

The report noted that AI-ready banks are heavily investing in fraud management, cards and payments, investment management and advisory, know your customer (KYC), and application processing and fulfillment.

Other critical banking processes such as credit assessment, information technology (IT) engineering, lead generation, document management, and digital content handling are also gaining long-term investments.

Accenture Managing Director Nicole Bodack said non-interest income played a key role in sustaining the profitability of banks last year.

Driven by this year’s global uncertainties and facing interest rates, Bodack explained that banks need to explore every avenue of growth.

“AI is already helping banks realize pockets of value, but as our research shows, there’s a lot more they can do,” she said.

Accenture’s report estimates that banks that effectively harness AI, particularly its generative variety, could unlock up to 30-percent improvement in productivity.

It is also poised to drive a 600-basis-point (bp) rise in revenue growth and 300-bp increase in return on equity (ROE) over a three-year period.

Vivek Luthra, a senior managing director at Accenture, said it’s time for banks to focus on how and where to invest in AI.

“In a capital-constrained environment, accelerating investments is about making strategic bets in areas that make the greatest impact,” said Luthra.

“By prioritizing AI investments in areas of the value chain that matter most, organizations can achieve more with less, and continue to invest in their growth,” he added.