{"id":124918,"date":"2026-03-16T19:30:31","date_gmt":"2026-03-16T22:30:31","guid":{"rendered":"https:\/\/tech.einnews.com\/article\/899864900"},"modified":"2026-03-16T19:30:31","modified_gmt":"2026-03-16T22:30:31","slug":"banks-struggle-to-scale-ai-as-legacy-tech-devours-it-budgets","status":"publish","type":"post","link":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/2026\/03\/16\/banks-struggle-to-scale-ai-as-legacy-tech-devours-it-budgets\/","title":{"rendered":"Banks struggle to scale AI as legacy tech devours IT budgets"},"content":{"rendered":"<div class=\"text-to-speech\"> <button class=\"text-to-speech__button button\"> <img data-opt-id=758893364  fetchpriority=\"high\" decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" fifu-lazy=\"1\" fifu-data-sizes=\"auto\" fifu-data-srcset=\"https:\/\/i3.wp.com\/www.ciodive.com\/static\/img\/play.svg?313321260226&ssl=1&w=75&resize=75&ssl=1 75w, https:\/\/i3.wp.com\/www.ciodive.com\/static\/img\/play.svg?313321260226&ssl=1&w=100&resize=100&ssl=1 100w, https:\/\/i3.wp.com\/www.ciodive.com\/static\/img\/play.svg?313321260226&ssl=1&w=150&resize=150&ssl=1 150w, https:\/\/i3.wp.com\/www.ciodive.com\/static\/img\/play.svg?313321260226&ssl=1&w=240&resize=240&ssl=1 240w, https:\/\/i3.wp.com\/www.ciodive.com\/static\/img\/play.svg?313321260226&ssl=1&w=320&resize=320&ssl=1 320w, https:\/\/i3.wp.com\/www.ciodive.com\/static\/img\/play.svg?313321260226&ssl=1&w=500&resize=500&ssl=1 500w, https:\/\/i3.wp.com\/www.ciodive.com\/static\/img\/play.svg?313321260226&ssl=1&w=640&resize=640&ssl=1 640w, https:\/\/i3.wp.com\/www.ciodive.com\/static\/img\/play.svg?313321260226&ssl=1&w=800&resize=800&ssl=1 800w, https:\/\/i3.wp.com\/www.ciodive.com\/static\/img\/play.svg?313321260226&ssl=1&w=1024&resize=1024&ssl=1 1024w, https:\/\/i3.wp.com\/www.ciodive.com\/static\/img\/play.svg?313321260226&ssl=1&w=1280&resize=1280&ssl=1 1280w, https:\/\/i3.wp.com\/www.ciodive.com\/static\/img\/play.svg?313321260226&ssl=1&w=1600&resize=1600&ssl=1 1600w\" class=\"text-to-speech__button__icon\" fifu-data-src=\"https:\/\/i3.wp.com\/www.ciodive.com\/static\/img\/play.svg?313321260226&ssl=1\" alt> Listen to the article <span class=\"text-to-speech__button__audio-length\">3 min<\/span> <\/button> <\/p>\n<div class=\"text-to-speech__controls\"> <audio controls class=\"js-text-to-speech\" preload=\"none\">  <\/audio> <\/p>\n<div class=\"text-to-speech__controls__text\"> This audio is auto-generated. Please let us know if you have <a href=\"https:\/\/www.ciodive.com\/contact\/\">feedback<\/a>. <\/div>\n<\/p><\/div>\n<\/div>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Dive Brief:&nbsp;<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<ul>\n<li><span><span><span><span><span><span>Corporate and investment bank executives implementing technology innovation programs are experiencing lackluster results. More than 4 in 5 <\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span><span>said<\/span><\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span> in a <\/span><\/span><\/span><\/span><\/span><\/span><a href=\"https:\/\/www.capgemini.com\/news\/press-releases\/85-of-banks-corporate-clients-plan-to-engage-with-a-non-bank-financial-institution-within-the-next-year-as-competition-with-private-capital-intensifies\/\"><span><span><span><span><span><span><span><span><span>Capgemini Research Institute report<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> released <\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span><span>Monday<\/span><\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span> that new product implementations aren\u2019t boosting revenue. Another 51% admitted that new products didn\u2019t deliver on expected cost savings either.&nbsp;<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>As consumer AI expectations rise, technology leaders are limited in how they can respond. Executives said only <\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span><span>29% of annual IT budgets<\/span><\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span> are set aside for transformative technologies while a larger chunk \u2014<\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span><span> 43%<\/span><\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span> \u2014 is devoted to maintaining legacy systems. <\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span><span>Capgemini surveyed 150 senior leaders from corporate and investment banks and 600 senior executives from non-bank financial institutions and global corporations.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span>&nbsp;<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>\u201cClient demands have shifted dramatically, and while CIBs have invested heavily in AI, many are struggling to move beyond the pilot stage,\u201d <\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span><span>Catherine Chedru-Refeuil, global head of corporate and investment banking at Capgemini<\/span><\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span>, said in a press release.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Dive Insight:&nbsp;<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>CIOs and technology leaders will play a pivotal role in adapting to the structural headwinds corporate and investment banks are facing as customers push for <\/span><\/span><\/span><\/span><\/span><\/span><a href=\"https:\/\/www.ciodive.com\/news\/banks-pursue-ai-efficiency-gains\/809898\/\"><span><span><span><span><span><span><span><span>new products and services<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>.&nbsp;<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span><span>More than half<\/span><\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span> of corporate and investment bank customers expect real-time responsiveness, <\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span><span>49%<\/span><\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span> want personalized engagement and <\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span><span>40% are looking for innovative products<\/span><\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span>. However, fewer than 2<\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span><span>0% of custom<\/span><\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span>ers find that banks are meeting those expectations, according to the <\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span><span>Capgemini<\/span><\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span> report.&nbsp;<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The customer demand for a modern experience comes at a time when revenue is expected to decelerate. Over the next five years, the annual growth rate is expected to slow from <\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span><span>6.5% between 2022 and 2024 to 5.4%<\/span><\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span>, due to competitive pressure, technology challenges and weakened customer relationships, the report found.&nbsp;<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cNon-banks and fintechs are scaling at speed, and expectations continue to rise,\u201d <\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span><span>Kartik Ramakrishnan, CEO of Capgemini\u2019s financial services strategic business unit and a member of the group executive board,<\/span><\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span> said in the report. \u201cFor incumbent banks, aging technology, tougher cyber-resilience requirements, and expanding data and compliance demands are squeezing margins and crowding out investment capacity.\u201d&nbsp;<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Banks will need to assess how to <\/span><\/span><\/span><\/span><\/span><\/span><a href=\"https:\/\/www.ciodive.com\/news\/bank-IT-modernization-plans-baringa\/760420\/\"><span><span><span><span><span><span><span><span>modernize legacy infrastructure<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>, redesign operating models and embed AI across business operations to pull ahead, <\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span><span>Ramakrishnan<\/span><\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span> said.&nbsp;<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Getting there means technology leaders will need to introduce flexible operating models and enable accelerated change, as well as strengthen data and technology foundations with large language models that can support real-time interactions and elevate decision-making, the report said.&nbsp;<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Growing an AI workforce through reskilling, rethinking roles and reinforcing behaviors that support AI-enabled work methods will also play a significant factor in business transformation. Yet Capgemini found 40% prioritized hiring outside AI talent while only 23% invested in internal reskilling.&nbsp;<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Meanwhile, building governance into AI processes and platforms will enable banks to better scale the technology, particularly as almost <\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span><span>two-thirds <\/span><\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span>of executives cited <\/span><\/span><\/span><\/span><\/span><\/span><a href=\"https:\/\/www.ciodive.com\/news\/us-banks-regulation-rising-ai-spend\/811767\/\"><span><span><span><span><span><span><span><span>high regulatory compliance costs<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> as a business pain point, according to the report.&nbsp;<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cTo succeed, CIBs must adopt a disciplined approach: creating enterprise-grade platforms and cultivating an ecosystem of trusted partners,\u201d said Chedru-Refeuil.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><strong><a href=\"https:\/\/blockads.fivefilters.org\"> <\/a><\/strong> <a href=\"https:\/\/blockads.fivefilters.org\/acceptable.html\"> <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8230; and investment bank executives implementing <span class=\"match\">technology<\/span> innovation programs are experiencing &#8230; , due to competitive pressure, <span class=\"match\">technology<\/span> challenges and weakened customer &#8230; report. \u00e2\u0080\u009cFor incumbent banks, aging <span class=\"match\">technology<\/span>, tougher cyber-resilience requirements, &#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-124918","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/124918","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/comments?post=124918"}],"version-history":[{"count":0,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/124918\/revisions"}],"wp:attachment":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/media?parent=124918"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/categories?post=124918"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/tags?post=124918"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}