JP Morgan, Bank of America and BBVA most prepared banks for artificial intelligence, according to UBS
US banks are the most prepared to handle the potential disruption of artificial intelligence to their business, new research reveals.
The US ranked highest out of nine countries in established markets, followed by Singapore and then Spain.
And when it comes to specific institutions, JP Morgan, Bank of America and BBVA were found to be making the most "attractive" AI plays.
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The research by UBS takes into account research of more than 24,000 consumers across 19 countries, 86 banks and the insights of the investment bank’s analysts.
The UK ranked seventh of the nine countries, signalling less satisfaction with AI assisted processes such as chatbots and virtual assistants among customers, and greater resistance to automated banking services.
Overall, UBS calculates that in an “optimal” scenario where disruption from AI is limited, banks could benefit from a potential uplift in revenue of 3.4 per cent and cost savings of 3.9 per cent by 2020.
An optimal scenario would be early adoption of AI to improve revenue and reduce costs.
It warned that in a worst case scenario where competition from non-banks such as Google or Alipay grew, and the benefits of automation were forced to be passed on to consumers via cheaper fees for example, revenue could be reduced by five per cent.
"Against a backdrop of rapid change and potential disruption, banks cannot afford to stand still and do nothing. Players that are quick to embrace innovation and new technologies, such artificial intelligence, will be well placed to maximise opportunities to improve revenues and efficiency, while mitigating disruptive pressures," said the report.
"In contrast, banks that are slow to adapt and invest are at risk of losing their competitive strength, market positioning, and, ultimately, their earnings power."