BOSTON — Financial services companies are expected to outspend other major industries on artificial intelligence over the next year as they increasingly view the technology as a strategic investment rather than an experimental initiative, according to a new report from PYMNTS Intelligence.
The report, The Enterprise AI Benchmark Report: Financial Services Pulls Ahead in the Enterprise AI Race, is based on a March survey of 60 senior technology executives at U.S. companies with at least $1 billion in annual revenue.
According to PYMNTS Intelligence, 85% of financial services and insurance companies plan to increase their AI budgets over the next 12 months, outpacing healthcare and media companies. The report said financial institutions are primarily investing in AI to improve productivity, strengthen their competitive position and reduce operational risk.
The findings suggest enterprise AI spending is entering a more practical phase, with organizations allocating capital toward projects that have demonstrated business value while continuing to evaluate others, PYMNTS Intelligence said.
Financial Services Leads Spending
According to the report:
- 85% of financial services and insurance firms expect to increase AI budgets during the next year.
- 65% cited productivity and efficiency gains as a primary reason for investing in AI.
- 65% also said maintaining strategic or competitive positioning is driving AI spending.
Healthcare and media companies are also planning increased investments, although their priorities differ, according to PYMNTS Intelligence.
Different Industries, Different Priorities
The report found:
- 80% of media and advertising companies plan to increase AI spending.
- 65% of those companies cited productivity improvements as the primary reason for investment.
- Only 25% pointed to measurable financial returns or return on investment as a key justification, the lowest percentage among industries surveyed.
Meanwhile:
- 60% of healthcare and medical organizations expect to increase AI budgets.
- 60% said they are funding AI pilot projects without requiring formal return-on-investment metrics, reflecting an emphasis on testing the technology before broader deployment.
PYMNTS Intelligence said healthcare organizations are increasingly exploring AI to ease operational pressures stemming from workforce shortages and fragmented technology systems.
Data Challenges Remain
Despite growing investment, executives reported significant obstacles to broader AI adoption.
Among the challenges cited:
- Financial services: 30% identified data quality and fragmented data systems as the biggest barrier to expanding AI.
- Healthcare: 30% cited system integration challenges, while another 30% pointed to data quality issues.
- Media and advertising: Executives reported a broader range of concerns, including workforce skills shortages, governance issues and leadership alignment.
AI Seen as Supporting, Not Replacing, Workers
The report found executives largely expect AI to complement rather than replace human decision-making.
Across the industries surveyed, between 80% and 85% of respondents said they expect AI to augment human decision-making over the next five years, according to PYMNTS Intelligence, suggesting companies increasingly view the technology as a tool to improve employee performance rather than substitute for it.
