76% of Financial Institutions Are Already On Board With AI | FF News at Money20/20 USA

76% of Financial Institutions are already on board with AI. That's according to a recent report from Acrew Capital in partnership with Money20/20, that uncovers the latest on AI adoption in financial services.  At last year's USA conference we spoke to Micky Tesfaye from the Money20/20 team and Lauren Kolodny of Acrew Capital to find out more.  Watch the video to gain some of the latest insights on how the technology is being used across the landscape, from startups to incumbents.  And, find out:

• How many banks are using AI in customer-facing products.
• Where are the gaps to be exploited by startups?
• Who's adopted AI the most? 

AI’s Impact on Fintech

In the video we were joined by Micky Tesfaye who is Head of Content at Money20/20, and Lauren Kolodny, Co-founder of Acrew Capital, who were perfectly positioned to talk about why the two organisations partnered to produce this report, which you can read here, the key insights uncovered, and what AI means for the future of fintech.

Why Partner on This Report?

Acrew saw Money20/20 as the ideal partner because of its status as a key meeting point for the financial industry. As Kolodny put it, “Everybody attends.” The conference serves as a hub for thought leadership, bringing together startups, banks, regulators, and investors to discuss the latest trends shaping financial services. Tesfaye added that Money20/20’s goal has always been to reflect the industry’s evolution. Since the launch of ChatGPT, AI has dominated conversations at their events worldwide, yet much of that discussion lacked broader context. This report aimed to fill that gap, providing a structured look at how financial institutions are actually using AI and what it means for the future of the industry.

Key Findings: AI Adoption in Financial Services

One of the most surprising findings was just how quickly financial institutions have embraced AI. Acrew and Money20/20 analyzed 221 leading financial services companies, tracking their AI-related announcements since January 2023. The numbers were staggering:

• 76% of these companies have announced AI initiatives.
• 51% have integrated AI into customer-facing products.
• A total of 376 AI initiatives were launched in under two years.

For an industry not traditionally known for early adoption of new technologies, these statistics defy expectations. Kolodny emphasized that AI is not just being experimented with—it’s becoming core to financial products and services. Tesfaye echoed this sentiment, noting that while media coverage often presents AI in finance as a slow-moving, high-level discussion, the reality is much more dynamic. The report makes it clear that AI adoption isn’t a future possibility—it’s happening now at an incredible pace.

The Competitive Landscape for AI in Finance

One of the biggest shifts AI brings to fintech is how competition plays out between incumbents and startups. Unlike past technology waves, such as mobile or cloud, AI’s success depends heavily on access to data. This gives established financial players an advantage, as they already have massive data sets to train AI models. However, Kolodny pointed out that there’s still plenty of room for startups. AI-native companies may find opportunities by focusing on areas where incumbents are slower to innovate. The report highlights two specific gaps:

1. Agentic Payments: While AI-powered digital assistants are becoming more common, few companies have announced solutions for allowing these agents to make payments autonomously. This could be a space where startups step in.
2. Gen-AI for Fraud Detection: Despite the rise of AI-driven financial crime, only 7% of the companies studied are actively using generative AI for fraud prevention. Meanwhile, deepfake-related fraud has surged by 700% year over year. This gap suggests a major opportunity for startups that can build AI-driven fraud detection tools.

Tesfaye also pointed to Money20/20’s exhibitor landscape as evidence of AI’s impact. Unlike past tech waves where incumbents hesitated to adopt new innovations, AI is being embraced across the board. This year’s event featured big names like OpenAI, Anthropic, and NVIDIA alongside early-stage AI startups—all competing to shape the industry’s future.

A Shifting Mindset: From Competition to Collaboration

As AI adoption accelerates, the traditional view of startups versus incumbents is evolving. While legacy financial institutions are integrating AI at scale, they still face challenges in areas like compliance and fraud detection. This opens the door for startups to collaborate with established players rather than simply trying to disrupt them. Kolodny noted that regulatory clarity will play a big role in AI’s future in finance. As regulators better understand the technology, the pace of AI innovation is likely to increase, particularly in high-stakes areas like fraud prevention and compliance.

A Report Built for the Industry

Beyond the insights in the report itself, Acrew and Money20/20 have also released a public database where users can explore AI adoption trends and run their own analyses. Kolodny encouraged fintech professionals to dig into the data and uncover new insights. Tesfaye emphasized that this isn’t just a static research piece—it’s a shared industry project designed to track AI’s impact over time. By making the data widely accessible, Money20/20 hopes to fuel more informed conversations and strategic decision-making in the financial sector.

Looking Ahead

As the conversation wrapped up, both speakers reflected on the energy at Money20/20 USA. Kolodny noted that, despite occasional claims that fintech is losing momentum, the industry is clearly alive and evolving. AI has the potential to fundamentally rebuild financial infrastructure from the ground up, and the rate of adoption shows no signs of slowing down. Tesfaye reinforced the point with a final takeaway: AI in financial services isn’t a question of “if” or “when.” It’s already here. Be sure to catch more of our great interviews from Money20/20 right here.