CARY, N.C.– As financial institutions are accelerating AI investment faster than other sectors, most are deploying the technology without the oversight and infrastructure needed to earn the trust that is critical for banks and Fis, according to the SAS’ Data and AI Impact Report: The Trust Imperative, with research insights by IDC.
According to SAS, just 11% of banks have cracked the code on trustworthy AI. Nearly half are getting it wrong, even as banking leads all industries in AI spending and maturity, the report found, adding that most banks still lack the foundations to scale AI responsibly, reveals IDC research.
Risk of Not Delivering ROI
“Without strong data architectures, governance frameworks and talent pipelines, banks risk pouring money into AI initiatives that can’t deliver ROI – or worse, that undermine the very trust they depend on,” Kathy Lange, research director of the AI and Automation Practice at IDC. Said in a statement/
Among the four sectors examined in the study, banking outpaces government, insurance and life sciences both in AI spending and adoption of trustworthy AI practices, the company reported. In fact, it said about one-quarter (23%) of banks operate at the highest level of IDC’s Trustworthy AI Index.
“But even with these advantages, most banking institutions fall far short of the report’s ‘ideal state,’ which combines high trust with high trustworthiness, the analysis states.
The Findings
According to the report:
- Only 11% of banks have achieved both high internal confidence in AI and AI systems that are demonstrably trustworthy.
- 47% fall into what IDC calls the “trust dilemma” – either underusing reliable AI because they don’t sufficiently trust it or over relying on AI systems that haven’t been adequately validated.
The report, based on a global, cross-industry survey of 2,375 IT and business leaders, reveals a “troubling pattern,” according to IDC: Investment in AI capabilities is not being matched by investment in the responsible innovation pillars that make AI dependable.
“In an industry where a single model failure can trigger regulatory penalties or erode consumer confidence overnight, that’s a dangerous disconnect,” IDC said. “And the problem isn’t a lack of investment: Banks’ AI spending trajectory exceeds all other sectors in the study, with most banks (60%) expecting growth between 4% and 20%. A smaller subset (12%) anticipates even steeper increases.”
Despite this momentum, the study found significant foundational weaknesses remain, including:
- Data silos. Nearly one in five banks (19%) still operate with a siloed data infrastructure – the worst rate among the study’s focus industries.
- Insufficient data foundations. A significant portion of banks lack effective data governance (45%) and/or a centralized or optimized data infrastructure (41%).
- Talent gaps. Many banks (42%) also face shortages of specialized AI skills.
What’s Planned
To address these issues, IDC said the study found more than half (52%) of banks plan to expand their AI architecture; another 43% plan to form or grow dedicated AI teams. But fewer than one-third (31%) plan to focus on developing and tuning AI models themselves.
The takeaway: These aren’t abstract or theoretical barriers; they’re structural, the company said.
Assumptions Challenged
The report also challenges the assumption that AI’s primary value in banking is cost cutting. To the contrary, banking stands alone in ranking product and service innovation above process efficiency as the leading source of AI-driven value, IDC reported.
“Cross-industry ROI figures show banks are onto something. Organizations using AI to improve customer experience reported the highest return – $1.83 for every dollar invested – followed closely by those centered on expanding market share ($1.74),” the analysis states. “Those focused on cost savings reported the lowest – $1.54 per dollar. Moreover, organizations that prioritized trustworthy AI were 60% more likely to report doubling overall return on their AI initiatives. That’s solid proof that responsible innovation is a growth accelerator that more than pays for itself.”
Move Toward Agentic AI
The analysis further found banks are also moving more decisively than other sectors toward agentic AI, with nearly one-third planning increases in trustworthy AI investment to support more autonomous systems. But as AI systems gain greater decision-making authority, the consequences of weak governance grow more significant, the company said.
