Infosys Bank Tech Index – Volume 2: AI spend to grow faster than all other technologies
Infosys has released volume two of its Bank Tech Index, which analyzes data from over 300 of the largest banks, by assets, in Asia Pacific, Europe, Latin America, the Middle East and Africa, and North America. The research report developed by the Infosys Knowledge Institute, the research and thought leadership arm of Infosys, gathers insights on technology spending, staffing, and performance from a panel of leading banks. As per the research, banks are growing their spend on artificial intelligence (AI) faster than any other technology, even as AI talent is the most difficult for them to acquire. It also emphasizes that AI, combined with the power of cloud, will deliver transformational outcomes for banks, both on growth and efficiency. However, cybersecurity still accounts for the major share of bank’s tech budgets.
The findings from this research are aimed at helping executives plan their budget spending in different technology areas. It further highlights the key technology skills that are in demand within banks.
The key findings of Infosys Banking Technology Index – Volume 2 are as follows:
- AI spend is growing the fastest – AI spend to grow by 6.2%, the fastest among all technologies in the first quarter of calendar 2024. AI already accounts for 20% of bank technology budgets and is likely to increase in budget share next quarter.
- Cost reduction has become a priority, but banks plan to increase their tech budgets – Reducing costs has gained strategic importance by 10 points since the fourth quarter of calendar 2023 to 32 points (out of 100). Regardless, banks are expected to increase tech budgets by 3% in the first quarter of calendar 2024, with 37% of banks forecasting a 5% or higher growth in tech budgets.
- AI talent is difficult to acquire – AI talent topped technology difficulty rankings with a score of 27 out of 100 (higher the score, harder it is to acquire such skills), outranking cybersecurity and cloud. This also corroborates the findings of the Infosys Generative AI Radars, launched in October 2023, December 2023, and January 2024. In terms of skills, AI talent accounted for 29% of all technology staff recruitments for banks in the first quarter of 2024.
To read the full report, please visit here.
About the Infosys Bank Tech Index
The quarterly report indexes quantitative data on technology priorities, technology spending, talent trends, and skills among 324 major banks in the Asia Pacific, Europe, Middle East, Latin America, and North America regions with assets over $10 billion. It provides decision makers with dynamic insights and evolving patterns across the technology landscape. The report categorizes banks according to their financial performance (calculated as revenue divided by total net assets). It also compares banking trends in advanced economies and emerging or developing economies.
