Cloudera and Finextra report reveals challenges in AI adoption for financial services

A global report by Cloudera and Finextra Research outlined a notable “implementation gap” in financial services organizations, as 97% faced data silos, with data security emerging as the main barrier to achieving success in Artificial Intelligence (AI). This study, based on a survey of 155 executives, revealed that while hybrid AI deployment has gained significance, firms continue to struggle with integration.

The survey indicated that 62% of financial firms adopted a hybrid approach, utilizing public cloud, data centers, and edge environments. Such a strategy is deemed essential for managing legacy systems and scaling operations effectively, allowing AI to be deployed where data resides.

Data security was identified as a critical challenge, with 97% of respondents noting that data silos hinder their AI capabilities. Almost half of the firms (48%) have progressed beyond initial experimentation with AI but have not fully integrated the technology into their operations. In contrast, only 26% reported complete enterprise-wide AI adoption.

Adrien Chenailler, Global Director of AI Solutions for Financial Services at Cloudera, stated, “The report confirms that a data-anywhere, hybrid strategy is non-negotiable. To bridge the implementation gap, financial institutions need a unified data and AI platform that ensures governance and security across all environments.”

Other findings from the report included that 84% of organizations prioritized a unified governance framework, and 25% ranked security as the top consideration when evaluating AI platform vendors. Gary Wright, managing director at Finextra Research, emphasized the importance of data sovereignty, privacy, and trust for maximizing AI potential.