77% of APAC Banking Leaders Call for Purpose-Built AI: FICO Survey

The survey highlights a strong consensus among APAC banking leaders regarding the necessity of specialized AI. This preference for purpose-built AI over adapted consumer applications stems from the highly regulated environment financial institutions operate within. The emphasis on explainable, auditable, and compliant AI models suggests that banks prioritize trust and regulatory adherence, moving beyond basic functionality.

The primary barriers to AI adoption are not technological or financial, but rather governance and regulatory issues. Data privacy and security, along with regulatory and compliance risks, are cited by a significant majority of respondents. This indicates that banks are less concerned with the technical feasibility or cost of AI, and more with the ability to integrate it responsibly and accountably within existing frameworks.

Generative AI is primarily seen as a tool for fraud and scam detection in the short term, with over 60% of respondents identifying it as a key area for operational improvement. This focus likely reflects the pressing challenge of scams across the region. For broader back-office operations, credit underwriting and lending decisions are identified as the main beneficiaries of purpose-built AI, signaling a practical application beyond just risk mitigation.

While 26% of banks have already deployed task-specific AI models, a further 46% expect such models to be deployed in fraud, compliance, and underwriting operations within one to two years. Another 26% anticipate adoption within three to five years. This suggests a gradual but firm shift towards implementing AI, moving past the initial debate of whether to adopt it to the practicalities of implementation, including investment in industry-specific models and clearer governance.