Recent research by FIS, a global expert in financial services technology, reveals a widespread distrust among Australians towards Generative AI (Gen AI) despite growing global interest in the technology. The study found that a significant proportion of Australians either distrust (33%) or completely lack trust (33%) in Gen AI.
Consumer attitudes towards Gen AI applications in financial services were also explored, uncovering a level of discomfort with its use in banking. Half of the surveyed Australians shared that they wouldn't feel comfortable if Gen AI were implemented by their bank. Major concerns cited for this unease were data security (77%) and the potential for fraud (50%).
Nevertheless, there seems to be an emerging curiosity about the potential of Gen AI in personal finance. Around 45% of participants said they would be interested in exploring a Gen AI-powered financial application (for banking, investing or insurance) if such an option were available in the future. The primary motivation behind this interest is time-saving, as noted by 45% of these interested respondents.
On the topic of personal finance, the majority of Australians are haunted by the rising cost of living and the impact of inflation, with nearly three-quarters (74%) listing these as their main financial concern.
Pete McCormick, Head of APAC B2B & Money Movement at FIS, commented, "Although many Australians are hesitant to trust Gen AI, if we look at the demographic breakdown, majority of the new generation of consumers are in fact quickly embracing the technology. Building trust is key to paving the way for wider adoption."
McCormick further added, "A few Australian banks are starting to deploy Gen AI in their operations. As our study suggests, it is crucial that they be transparent about their use of data if they are to succeed in winning consumer trust."
"Once valid concerns around Gen AI are addressed, it will be interesting to explore positive use cases in financial services. It is still early days, but the potential for innovation is immense."
Further insights from the study reveal that while 64% of Australian consumers are familiar with Gen AI, less than half (45%) have experience using it. Adoption of Gen AI is primarily driven by Gen Zs, with 75% claiming that they have experience with it, compared to 22% of Boomers. Additionally, 40% of consumers expressed interest in leveraging an existing Gen AI tool for financial advice.
Acceptance towards Gen AI for financial-related tasks is increasing, with 54% comfortable with Gen AI choosing savings accounts, 53% okay with Gen AI selecting insurance accounts, 47% with it making investment decisions, and 44% with it managing retirement accounts.
Looking forward, the attitude towards Gen AI is set to change, with a larger percentage of Australians claiming they will be more (45%) as opposed to less (9%) comfortable with Gen AI in the five years.