NEW YORK, May 18, 2026 /PRNewswire/ -- Long at the forefront of artificial intelligence (AI) adoption, financial institutions report that use of the technology is accelerating—but adoption is outpacing institutions' ability to manage risk, establish governance and reliably measure return on investment, according to BRG's new report AI in Financial Institutions: Staying Ahead in the AI "Arms Race."

Drawing on survey responses from executives leading AI implementation efforts at financial institutions around the world, the report finds that nearly all respondents (94%) expect AI adoption to increase, citing significant efficiency gains in customer service, corporate functions and cybersecurity. But progress in adoption is not being matched by institutional readiness: only half of respondents believe their AI policies are fully equipped to manage risk in a changing regulatory environment, and many struggle to achieve auditable returns, enterprise-wide adoption and comprehensive governance frameworks.

As the AI "arms race" accelerates, this uneven execution carries particularly high stakes.

"Financial institutions are in constant combat," says Samantha Welch, a BRG managing director. "As AI tools become more advanced, they also become more universally used, which means a sophisticated fraud scheme is much easier to perpetrate with limited resources." 

Institutions are prioritizing AI use where the case for adoption is clearest—either in high-risk areas such as cybersecurity and fraud detection or lower-risk applications with more immediate, measurable returns like customer service. More than six in 10 respondents report implementing AI in cybersecurity, fraud detection and corporate functions, reflecting expectations that AI-related risk exposure will increase most in fraud and financial crime, credit risk and regulatory enforcement.

This focus also highlights the unevenness of current strategies. While organizations are investing heavily in fraud and cybersecurity, they are more likely to underestimate risks related to reputation, workforce impact and organizational change.

That imbalance extends to how success is measured. AI initiatives are often evaluated through a narrow lens of efficiency and cost reduction, rather than broader transformation.

"I see so many headlines like, 'We can do more with less now,' but what about doing things we never thought possible?" asks BRG Managing Director Michael Canale. "We need to think more about opportunities to harness AI to do new and exciting things and less about how to replace people and processes."

About BRG
BRG combines world-leading academic credentials with world-tested business expertise and purpose-built emerging technologies. Our culture centers on agility and connectivity that set us apart and get you ahead. 

At BRG, our professionals include specialist consultants, industry experts, renowned academics and leading-edge data scientists. Together, they bring a diversity of real-world experience, data and human and artificial intelligence to economics, disputes and investigations; corporate finance; and performance improvement services that address the most complex challenges facing organizations across the globe.  

Our unique structure nurtures the interdisciplinary relationships that give us the edge, laying the groundwork for more informed insights and more original, incisive thinking. When paired with our global reach and resources, our diverse perspectives and technical capabilities make us uniquely capable to address our clients' challenges.  

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SOURCE BRG