Majority of European financial services CEOs embrace AI as a force for good but have concerns of unknown consequences

• Over half (56%) of European financial services CEOs believe AI drives business efficiency, yet 63% say not enough is being done to manage unintended consequences
• Over half (51%) of Europe’s financial services CEOs have already integrated AI into their capital allocation, with 43% planning to do so within the next year
• Nearly three-quarters (71%) of financial services CEOs say AI is used within their strategic operations

CEOs across Europe’s financial services sector are embracing opportunities created by artificial intelligence (AI), yet nearly two-thirds (63%) remain wary of unintended consequences, according to the latest EY CEO Outlook Pulse Survey.

The July edition of the pulse survey, which canvassed the views of 96 European financial services CEOs on their strategic plans, headline concerns and investment intentions, found that while leaders embrace the potential advantages that AI can bring to businesses and society, they are concerned about the potential risks of the emerging ’generative AI’ capabilities. Over half (55%) of respondents said that more needs to be done to mitigate against AI “bad actors” who could use the technology in harmful ways, such as by creating deep fakes or disseminating disinformation, and 52% believe a stronger focus is required on the ethical implications of AI and how it could impact key areas, such as privacy.

Despite concerns, European financial services CEOs are adapting their investment strategies to maximize the benefits that AI could bring to their businesses. Almost all CEOs surveyed (94%) are integrating AI into their capital allocation, with half (51%) of respondents actively investing in the technology, and 43% planning to make significant investments in AI in the next 12 months.

More than half (57%) of respondents expect the impact of AI in the workforce to be counterbalanced by new roles and career opportunities that the technology creates. This shows that leaders believe AI will augment human potential, rather than replace it, by bringing exponential value to current processes and capabilities.

Patrice Latinne, EY EMEIA Data & Artificial Intelligence Financial Services Partner, comments: “Europe’s financial centers are increasingly tapped into the disruptive capabilities that AI offers today, but that does not mean there aren’t concerns about its application. AI is infinitely innovative, which – while exciting – comes with challenges. Governance and transparency are increasingly crucial to the safe adoption of the technology, and ethics must remain central as firms progress their tech capabilities. With many firms and individuals maintaining an understandably cautious attitude, particularly towards generative AI, building confidence focused on the exponential value to be created will be fundamental to successful implementation.”

About the EY 2023 Global CEO Outlook Pulse

The EY 2023 Global CEO Outlook Pulse Survey aims to provide valuable insights on the main trends and developments impacting the world’s leading companies as well as business leaders’ expectations for future growth and long-term value creation.

It is a regular pulse survey of CEOs from large companies around the world conducted by FT Longitude, the specialist research and content marketing division of the Financial Times Group.

In June and July 2023, FT Longitude surveyed on behalf of the global EY organization a panel of 1,200 CEOs across Brazil, Canada, Mexico, the United States, Belgium, Luxembourg, the Netherlands, France, Germany, Italy, Denmark, Finland, Norway, Sweden, the United Kingdom, Australia, China, India, Japan, Singapore, and South Korea. Respondents represented the following industries: advanced manufacturing and mobility; consumer products and retail; energy and resources; financial services; health sciences and wellness; and technology, media and telecoms.

• Surveyed companies’ annual global revenues were as follows: less than US$500m (20%), US$500m–US$999.9m (20%), US$1b–US$4.9b (30%) and greater than US$5b (30%)
• The CEO Imperative Series provides critical answers and actions to help CEOs reframe their organization’s future. For more insights in this series, visit ey.com/en_gl/ceo