BFS firms have already begun replacing human‐led services with AI‐driven solutions, signaling that the ‘Services‐as‐Software’ vision is already live in the market
In the 2025 Pulse survey, we found that 25% of BFS respondents have started replacing human-led services with AI, and another 61% plan to initiate AI‐led replacement efforts within the next three years. This suggests that by 2028, nearly 85% of large BFS institutions will actively embed AI to supplant manual processes. As this rapid shift gets underway, new technical and soft skills will be needed to adopt AI at scale optimally.
- BFS firms are embedding AI across cybersecurity (45%), digital (45%), and finance (42%), highlighting a shift from task automation to embedded ‘software services’ that continuously learn and adapt—meaning security teams, digital product owners, and finance leaders must pivot from manual execution to strategic oversight and AI governance. The use of AI in software engineering (432%) and IT operations (35%) will compress dev cycles and move the needle to always-on delivery, demanding new skills in AI-model validation, rapid iteration, and risk management.
- Only a modest share is ready to relinquish innovation/product development (13%) to AI—reflecting that it remains more experimental here, used to augment brainstorming or simulate market scenarios rather than drive decisions end‐to‐end. Despite rising regulatory and stakeholder pressures, only 10% of BFS organizations say they will fully automate ESG reporting or governance processes with AI, likely because human judgment is critical for risk and reputation management. IT architecture (3%) and legal/risk/audit/compliance (3%) are highly regulated, judgment‐intensive domains and currently show the least appetite for total AI‐led replacement. At best, firms are piloting AI for code review or contract analysis, leaving ultimate authority and decision-making in human hands.
- The data underscores that AI‐led ‘Services‐as‐Software’ is rapidly shifting from concept to reality in BFS. While certain functions—especially security and digital customer journeys—are at the forefront of this transformation, other areas will follow more cautiously. Vendors and service providers should tailor their roadmaps to align with this tiered adoption curve, helping clients navigate technological and organizational hurdles as they transition to AI‐first operating models. Success demands a wholesale rethinking of value creation, moving from manual service delivery to an AI-driven, continuously evolving software paradigm.
The Bottom Line: As more core processes are offloaded to AI, the ultimate differentiator will be how transparently and reliably BFS organizations can demonstrate AI decisions to regulators, investors, and customers. AI must not be viewed as a collection of point tools but as the new operating fabric.
