A recent study by ORX has highlighted a key trend among financial institutions towards integrating GenAI to bolster data-driven risk management strategies.
According to Finextra, the survey, which polled some of the largest banks and insurance companies worldwide, found that 45% of firms are actively using mainstream GenAI assistants, and an equal percentage plan to deploy Large Language Models (LLMs) in operational risk applications within the next 18 months.
Helen L’Abbate, Deputy Director – Research and Information at ORX, expressed optimism about the adoption of GenAI, stating, “It is encouraging to see firms embracing genAI as a supportive tool in human decision-making and using it to create opportunities for connecting datasets in second-line functions. We are seeing firms use it to support knowledge discovery, drafting code and documents, and to significantly enhance decision-making in areas like risk frameworks and taxonomies, as well as improving efficiency and response times to policy inquiries.”
The survey revealed a robust engagement with GenAI tools for enhancing personal productivity and facilitating daily business operations. OpenAI’s ChatGPT emerged as the most popular GenAI tool, employed by 35% of respondents, followed by Microsoft Copilot at 22%, Amazon Q at 13%, and Google Gemini at 7%.
These tools are primarily used for automating tasks such as document summarisation, data analysis preparation, and generating responsive chatbots to provide quick access to internal risk information.
Despite the nascent stage of LLM implementation in production environments—with only 14% of firms currently using LLMs in live applications—the survey noted a promising 77% of firms have plans to leverage LLMs in the short to long term.
Moreover, 95% of firms acknowledged the centrality of data as a fundamental component of effective risk management, with many moving towards centralising their operational and non-financial risk (ONFR) relevant data and pipelines.
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